Apple to pay royalties for Nokia innovations

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Apple has finally capitulated to acknowledge Nokia’s innovations in the mobile industry and have chosen to settle their patent dispute with the Finnish company.

It was odd that Apple initially chose to deny well-documented patents owned by Nokia and which every other manufacturer acknowledged and paid for. But odd as it was, it was typical Apple.

Anyway, the dust is cleared and Apple has thrown in the towel. The US company has now acknowledged Nokia’s industry patents and agreed to pay up. Apple will pay Nokia a lump sum for the use of those patents in already manufactured devices, as well as pay royalty from now on.

Nokia may not be where everyone would like them to be now, but they have been the undisputed most innovative manufacturer in the mobile space till date and have patents that veryone else depend on. It is good to see them reap from where they have sown.

It is interesting to know that Nokia’s patents are so foundational that they benefit from the success of every other mobile maker.

23 comments

  1. I sympathise with nokia,indeed they brought us where we are today. I liken nokia to my profession-every other science&tech related profession benefited from her,and yet you see a posture of denial.if nokia must die,then she will die gracefully knowing that she is the mother of all mobile inovations

  2. Jujukemist,

    I wonder at all this talk of the death of Nokia, just because they are losing marketshare under a restructuring exercise. Years ago, Motorola was the world’s largest mobile manufacturer. They fell from that lofty position. But they are still not dead.

    Sony Ericsson went through their fair share of troubles. Today, while they remain a small player globally, they are certainly not dead.

    Is Nokia really dying or are you guys simply parroting the empty blabbings of some airhead tech blogs who do not seem capable of thinking straight?

  3. @Yomi: The tech bloggers that think Nokia is dead are mostly North Americans and Europeans who tend to see the world through the eyes of Americans. The truth is that Americans (USA) are a very ignorant people and they want to believe that America represents the world at large.

    The American tech bloggers have effectively succeeded in killing Nokia in North America and to them that represents that Nokia is dead. In the next year or two, we would begin to see the true position of Nokia

  4. @Yomi. Just because nokia is your sponsor doesnt mean you must look the other way. Nokia is dying but not dead. Either way nokia can not remain number one, android has that position. All good things MUST come to an end, including nokia.

  5. Mark,

    I suggest that you open your eyes and look around a bit to familiarise yourself with my writings before opening your mouth to comment in ignorance. Anyone who has followed me for at least a month knows how critical I am of Nokia’s gaffes. But you wouldn’t know that; would you?

    As far back as a year to two ago, I had written on this blog that Nokia was not likely to remain number one. But apparently, dropping from number one means dying to you. Sad.

    If Nokia does die, life would go on, for me and for everyone else. But for the love of God, it is just silly to continue peddling this death/dying thing. Do you even know what those terms really mean in business sense?

    By way of example, I haven’t seen a Motorola handset in months, and Motorola has been struggling to make a profit for years – yet Motorola is not dying or dead.

    You guys just need to get a life. It looks like without Nokia’s travails, you wouldn’t have anything to gripe about. Cheers. But don’t forget, look before you leap.

  6. Wow. I twitted this just yesterday. This shows the power of Patents. Apple has been going around acquiring patents very assiduously. Unfortunately for them, Nokia came first and has been in the mobile business even before Apple was just wearing nappies with the original iphone 2007. SO almost all Mobile phone manufacturers working on GSM MUST pay Nokia some form of royalties on account of their pervasive amount of patent in the mobile Tech world! Isn’t that just great!

    SO if Apple makes it; Nokia makes it somehow. This is analogous to what we have between Microsoft and Android! I wonder why that news item didn’t appear here! Microsoft makes more money from Android than their own proprietary Windows phone 7; indirectly. What am I saying? Heresy? Let me just explain. HTC settled a patency issue with Microsoft on their Android phones long ago. SO HTC pays Microsoft royalties on each HTC android phone sold. If you factor in the abysmal performance of the windows phone 7 in the market and that HTC is largest Android phone Manufacturer in the world, you wouldn’t be too far to see that Microsoft makes more money from Android.

    Now back to Apple and Nokia. It just shows that it is really an interconnected world. What goes around comes around. Apple sues Samsung. Nokia sues Apple. Apple countersues. And Samsung countersues. Oracle wants big cut of Android in damages suit should Google lose an IP battle. Behind the ball game there are deals and counter deals. That is just the way of corporate culture. Everyone benefits or lose somehow; from each other. Anyone who buys Nokia would be rich from a lot of patents! Just a soliloquy!!

    Finally, supposing Nokia refuses to license their patent to a competitor; What will happen to Apple? Just food for thought. I may just do that if I were Nokia and cynical. Would the law allow me??

    Also, I want to agree with Jujukemist. Nokia is a dying brand no matter what Elop tries to say! They are losing market share worldwide incredibly fast. They had to bring down their sales forecast for the rest of the quarter and indeed the year on account of crappy sales. Their first WP7 device will not be ready until the last quarter of this year or early 2012. While all the while other manufacturers have a clear field to innovate and release products. They are slow in churning out new devices too. STANDARD AND POOR cut Nokia’s investment rating to BBB+; just 3 step downgrade would classify Nokia as below investment grade or junk! FITCH rating of BBB- is even worse, just a step away!! Even Analyst Tomi Ahonen has predicted Nokia falling to number 3 or 4 position by the end of this year! What about rumours of Samsung or Microsoft wanting to buy Nokia? Hostile Takeover? Everywhere shows gloom for Nokia. It is sad but that’s just the truth!

  7. Let’s not mix up Symbian and Nokia guys. I don’t see Nokia dying yet but as for Symbian, na life support e dey ooo – IMO

  8. @yomi, cease fire! as we say in the Nigerdelta.I know what a man with passion can project. I didnt say death! I didnt. Every one on this blogsite knows that yomi made jujukemist to love Nokia/symbian, and that he is going to get the N8 on account of this,eventhough N8 is being overtaken. I said dying!However you feel,take this from the jujukemist nokia’s fall, would not be like motorola.Hers would be worse-because she was very stupid! Nokia’s condition would be so bad that she would make more money from patents payments than selling phones!
    Finally, I can assure you no tech blog including this one can influence negatively the jujukemist.Technical analysis is a gift the master programmer gave me freely.shukran laka

  9. Dont get me wrong, i love nokia but since nokia sold its soul for 1billion dollars to microsoft i have felt bad for nokia. Nokia should have chosen android but 5years will tell us where nokia will be. Tragic

  10. @Harry Echemco

    “@Yomi: The tech bloggers that think Nokia is dead are mostly North Americans and Europeans …”

    It is wrong to do a hasty generalization and classify two continents like that. Even if you exclude America, are the European blogs like zdnet.com also lying?

    So if “Americans (USA) are a very ignorant people”, it is only Nigerians who are wise and well educated? Racist I should say. racist!

    More Smartphones are bought in Europe than Africa for instance. SO if Nokia loses Market Share in Europe also, then they are truly dying!

  11. It’s good to see Apple finally succumbing to reason and paying Nokia for their patents. The ITC and the law courts should be more proactive in these patent wars and punishing erring companies who resort to litigation instead of paying what is due to patent holders for their toil in bringing such technological advancements to light.

  12. All we can do is sit back and cautiously watch as the first windows phone 7 made by Nokia unfolds. As Nokia has put all her eggs in one basket and deliberately jettisoned Symbian and Meego, let’s hope and pray WP7 is the Knight in shining armour that would save their day. But isn’t this just wishing all their problems away in an untested platform? Wistful thinking? Recently even HTC; Microsoft long partner since Windows mobile announced that it is abandoning WP7 and concentrating more on Android!

    Just why Can’t Nokia do Android if it must throw away Symbian and Meego?/! But let’s hope that the patent royalty valued to be almost 600Million Dollars by ZDNET help them to stay afloat!

    http://www.zdnet.com/blog/btl/nokia-likely-netted-600-million-plus-in-apple-patent-settlement/50590?tag=mantle_skin;content

  13. @afewgoodmen

    “Just why can’t nokia do android if it must throw away symbian and meego?”

    I said the same thing many months ago when nokia first made the disclosure but I was labeled as a “prophet of doom” and thought to be myopic. All the same, I believe nokia is not going to die. It is too omnipotent to die. It will regress and fold inwards but if it can be turned around by a good CEO, (who is not a Trojan), it will rise and shine once more.

  14. I wish yomi could talk sense into Elop’s . . .the devil has attacked NOKIA using a 2 pronged strategy:android & apple are killing(oh sorry oga yomi) NOKIA wherever smart phones are sold in the world-perhaps except AFRICA.ZTE, HUWAWEI,HISENSE,TECNO,SAMSUNG,LG etc are terminating NOKIA’s life in the low end phone segment,all over the world-nigeria is an excellent example.I know this,because i advice people to buy phones,based on their lifestyle&budget.All hail nokia-respect,but I sense the darkside in her,a negative force,her fate is sealed.we all pray otherwise.amin

  15. Trojan! hmn you just supplied me with what i had suspected all along.could it be that Elop is a mole,a snitch,malware executed to implode NOKIA from within? i never liked this Elop guy,he is going to elop with nokia’s SOUL

  16. Those are serious comments up there.

    In my opinion

    Past
    Nokia has had a great time with Symbian and their works are still paying off up till today and that is what Apple has finally acknowledged.

    Present
    Nokia to me is currently undergoing transformation and I find it had to conclude or decide its Faith. Considering the fact that it is teaming up with Microsoft on WP7. Further more, we all have our trying time, even Apple had serious issues b4.

    Future
    Come on, even Apple and Android has acknowledged that the union of Nokia and Microsoft is a serious challenge.

  17. I totally agree with bosun99Uk. Nokia has had a good time going it alone back when hardware was all that mattered right now, software has taken the front seat. And Nokia’s alliance with Microsoft couldn’t have been a better choice. If Nokia had chosen to go along with Android which many geeks would have loved to see, it would have faced a crisis of differentiating itself from the myriad of Android devices out there.

    Going with WP7 and Microsoft gives it an added advantage in the WP7 is yet to gain traction and a Nokia device would definitely stand out, the WP7 also brings to foyer what iOS did the uncanny simplicity of use, developer support in which Microsoft and Windows has enjoyed, A great ecosystem in XBox, Zune music store, Windows Media player, Bing which has continued to bite off small chunks of Yahoo and Google’s search market, cloud computing (in SkyDrive).
    All Nokia has to do is bring in compelling devices that match whatever the Android OEM’s has to offer. An improved N8esque or E7 WP7 device with a fast processor and great imaging capabilities would be a great pitch to kick start it’s recovery. Also a device similar to C7 with atleast a 1GHz processor and 8MP camera with autofocus for the medium range market would do wonders for Nokia’s bottom line. And finally filling out the lower end with S40 devices with appealing features not just prices that can atleast multi-task to some degree.

  18. @bosun99uk
    Sorry, I can only agree with your “Future” if nokia wakes up from it’s slumber and do something fast. Remember they are not the only ones making WP7. HTC is there before them and is not sleeping.

    @martinkem
    I am not into marketing or business promotion so I may not aPpreciate your position. Why on earth must nokia be differentiated from other makers if they make androids? Nokia label on their phones with the legendary solid hardware is enough to win them any accolade they need. And of course, their sales will make them smile to the bank.

    I have said this over and over to the point of nausea, nokia does not need to tie themselves with Microsoft and abandon their own line in order to be a successful WP7 maker.

    One thing is certain. Nokia will rake in more money now with the Apple’s out of court settlement. It shows nokia as an innovator and pacesetter. They have worked and so should relay and reap the reward of their labour in their old age. I see more of this kind of rewards coming nokia way in the near future.

  19. Jujukemist. Not long ago you were a determined protege of the legendary Yomi. DO not let Nokia or Symbian spoil that relationship. Once in a while a Jedi Master and his padiwan may fall apart. That’s just the way of the world. But the important thing is not to delve into the Dark side…

    On another note, Deoladoctor has said some words of Wisdom. Let it be. I also agree!

    Only time can redeem Nokia and Elop. And time however is running fast. The victory over Apple on patent licensing is only a passing note. Nokia could only survive by selling its own products and not just from royalties.

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