According to reports, mobile phone-maker firms Apple and Nokia have settled a dispute over the use of patented technology in smart phones and decided to “co-operate”.
Back in December, Nokia took legal action against Apple Inc asserting the company had violated 32 technology patents covering displays, user interfaces and video programming.
Both giants reportedly have now agreed a deal letting Apple to use the technology, and Nokia will get an up-front cash payment.
In an agreement, Apple will also sell Nokia’s health products in its retail stores.
The two firms have not exposed specific details of the fiscal agreement, but one analyst said it would be worth millions of dollars to Nokia.
“The agreement is per year, so it’s probably in the hundreds of millions of dollars range,” said Keith Mallinson, an industry analyst as Wiseharbor.
“That’s partly because it covers many patents, and Nokia has some very important ones, they were one of the pioneers of cellular standards.
“But looking at Apple’s business… one industry estimate is that they made $140bn (£107bn) revenue on iPhone sales in 2016.
“Even a small royalty against that – less than 1% – would be in the hundreds of millions of dollars.”
In the meantime Nokia said in a statement that it was “looking forward to supporting Apple”, while Apple’s Jeff Williams said the company was “pleased with this resolution of our dispute”.
During the tenure between 2009 and 2011, the two firms were locked in a series of legal fights over the patents for the technology they used in their mobile phones.
Nokia at that time was still the world’s foremost mobile phone-maker, but was being swiftly diluted by the growth of Apple ( AAPL) iPhone.