Apple and Nokia are exploring future collaboration in digital health initiatives after settling a 5 month patent dispute. Details of the patent agreement remain confidential; however, Nokia will receive an up-front cash payment from Apple, with additional revenues during the term of the agreement.
Under a business collaboration agreement, Nokia will be providing certain network infrastructure product and services to Apple. Also, Apple will resume carrying Nokia digital health products (formerly under the Withings brand) in Apple retail and online stores. Regular summits will be held between top Nokia and Apple executives will ensure that the relationship works effectively and to the benefit of both parties and their customers.
“This is a meaningful agreement between Nokia and Apple,” said Maria Varsellona, Chief Legal Officer at Nokia, responsible for Nokia’s patent licensing business in a statement. “It moves our relationship with Apple from being adversaries in court to business partners working for the benefit of our customers.”
The total value of the patent settlement will be reflected partially as patent licensing net sales in Nokia Technologies and partially as net sales in other Nokia business groups. Nokia will disclose patent licensing revenues patent licensing revenue in its quarterly announcements and expects that revenues for the agreement will be recognized in the Q2 2017, including an element of non-recurring catch-up revenue.
