Nokia has confirmed that it received an upfront cash payment of €1.7 billion ($2 billion) from Apple as part of the patent licensing lawsuit the companies settled in May.
The “substantial” payment helped strengthen Nokia’s cash position for the second quarter of fiscal 2017, Nokia CFO Kristian Pullola said on the company’s Q2 conference call, as first noted by Nokiamob.
Nokia initially sued Apple over 32 claims of patent infringement on technology including displays, display, user interface, software, antenna, chipsets, and video coding. In May, the two companies settled all litigation related to the dispute and agreed a multi-year patent license. The financial details of the deal were not disclosed at the time.
Under the agreement, Nokia is providing Apple with certain network infrastructure products and services while Apple will sell Nokia digital health products in its online and retail stores. The two firms also promised to collaborate on future digital-health initiatives.
The deal has significantly increased Nokia’s licensing income, Pullola said this week. “Furthermore, reaching an agreement quickly without continuing costly litigation enables us to save considerable OpEx, and that adds to the value of the deal from our perspective,” Pullola said. The Finnish company had expected to spend approximately €100 million annually on litigation fees related to the Apple dispute.