Nokia and Apple said they have settled all litigation related to their intellectual property dispute and agreed on a multi-year patent license. Under the new collaboration deal, Nokia will supply certain network infrastructure products and services to Apple while Apple will resume carrying Nokia digital health products (formerly under the Withings brand) in Apple retail and online stores. The companies are also looking at collaborating on digital health initiatives.
No financial were provided beyond that Nokia will receive an up-front cash payment from Apple, with additional revenues during the term of the agreement. With the up-front cash payment from Apple in mind, Nokia will provide an update of its capital structure optimization programme when it reports its third-quarter results.
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. Nokia expects that revenues for the agreement will start to be recognized in the second quarter, including an element of non-recurring catch-up revenue.
