Apple will be paying royalties to Nokia as the two companies announced that they have settled a long-drawn legal dispute over patents, a press release from the Finnish phone maker revealed on Tuesday.
“The financial structure of the agreement consists of a one-time payment payable by Apple and on-going royalties to be paid by Apple to Nokia for the term of the agreement,” the release from Nokia read adding that the “specific terms of the contract are confidential.”
According to Reuters, however, the amount could be 1 or 2 percent of Apple’s iPhone revenues which the news organization says could be “around $43 billion this year.”
Shares of the Finnish phone maker, recently reported to be losing the first spot in the world’s ranking of smartphone makers to Samsung during this quarter ending in third place as Apple is also expected to clinch the second spot, rose as the news of the payment and the settlement broke out.
“We are very pleased to have Apple join the growing number of Nokia licensees,” Nokia President and CEO Stephen Elop said in a statement. “This settlement demonstrates Nokia’s industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market.”