Nokia, Apple agree to settle long-running patent row

PanARMENIAN.Net - Nokia notched up a rare victory against arch-rival Apple as the iPhone maker agreed to settle a long-running row over patents.

Nokia said on Tuesday, June 14, the deal would boost second-quarter earnings, having warned at the end of May that it would miss targets, Reuters reports.

Shares in the struggling cellphone maker rose 3 percent. Analysts welcomed the news and said it would help Nokia concentrate on core business at a time when it faces huge challenges.

"This is the first positive news from Nokia for a long time. They can both focus on their businesses now, and the dispute was settled to Nokia's advantage," said Mikael Rautanen, analyst at Inderes in Helsinki.

Apple and Nokia have been locked in a legal tussle since October 2009, when Nokia sued Apple in the United States, arguing the iPhone-maker was getting a "free ride" on technologies patented by Nokia.

"The deal structure - a one-time payment as well as running royalties - suggests a fairly good outcome for Nokia," said Florian Mueller, independent specialist and blogger on patent battles.

"Maybe Nokia could have continued to play hardball and got an even better deal if it didn't face the challenges it undoubtedly has. But this looks like a fairly important victory," Mueller said.

An Apple spokesman confirmed the deal on Tuesday.

"We're glad to put this behind us and get back to focusing on our respective businesses," he said.