Nokia and Apple have settled all litigation related to their intellectual property dispute and agreed a multi-year patent license.
"This is a meaningful agreement between Nokia and Apple," said Maria Varsellona, Chief Legal Officer at Nokia, responsible for Nokia's patent licensing business. "It moves our relationship with Apple from being adversaries in court to business partners working for the benefit of our customers."
Under a business collaboration agreement, Nokia will be providing certain network infrastructure product and services to Apple. Apple will resume carrying Nokia digital health products (formerly under the Withings brand) in Apple retail and online stores, and Apple and Nokia are exploring future collaboration in digital health initiatives.
"We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia," said Jeff Williams, Apple's chief operating officer.
While details of the agreement remain confidential, Nokia will receive an up-front cash payment from Apple, with additional revenues during the term of the agreement.
The value of the agreement will be reflected partially as patent licensing net sales in Nokia Technologies and partially as net sales in other Nokia business groups. Due to the up-front cash payment from Apple, Nokia intends to provide an update of its capital structure optimization program in conjunction with its third quarter 2017 results.