The world's leading mobile phone maker Nokia said Tuesday that its competitor Apple had agreed to pay royalties for use of Nokia technology in its devices, ending all of their 46 ongoing patent disputes.
"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," Nokia said in a statement, adding that the details of the contract were confidential.
The deal constitutes a massive victory for Nokia and ends years of tit-for-tat suits filed by the two companies, with both agreeing to withdraw all complaints they had filed with the US International Trade Commission.
"We are very pleased to have Apple join the growing number of Nokia licensees... This settlement demonstrates Nokia's industry leading patent portfolio," Nokia chief executive Stephen Elop said in the statement.
The Finnish company, which has been struggling to maintain its position as global market leader, also said the deal should have "a positive financial impact" on its second-quarter performance.
Just two weeks ago, Nokia warned that its sales for the quarter would be far worse than previously expected and that it could no longer give a full-year forecast, sending its share price to its lowest level since early 1998.