Apple coughed $2 billion in the second quarter to settle claims it infringed on 32 Nokia Patent’s. The colossal amount is not in any way expected to affect the tech giant’s cash balance especially on having a good fiscal third quarter. The iPhone maker reported revenues of $45.4 billion compared to a year ago quarter of $42.4 billion.
The Nokia settlement emanates from a 2016 lawsuit where the Finish Company sued the iPhone maker in two different lawsuits. In the lawsuits, the company alleged that the tech giant had agreed to a licensing deal in 2011 for some patents, but declined offers to license some patented technologies that it went in to use without permission.
In the lawsuits, Nokia was pushing for reasonable royalties for patents tech giant and used to enrich itself on a good number of iOS products. The Infringed patents touched on technologies related to software, video codding, chipsets UI and antenna.
In May, the two tech juggernaut reached a truce and agreed to settle all litigation. The $2 billion settlement marks the final part of the long running standoff that appears to have brought the two companies even closer rather than fuel enmity.
“We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia,” said Jeff Williams Apple Chief Operating Officer.
Nokia is currently providing Apple with network infrastructure product and services as part of an ongoing collaboration. Apple on the other hand continues to sell the Finish Company’s digital health products in its retail and online stores. The two companies have also announced plans to join forces in exploring digital health initiatives
Apple’s attention after the Nokia settlement switches to another legal battle also involving patents. A U.S court has ordered the Cupertino based tech giant to pay the University of Wisconsin $506 million for infringing on its patents. The lawsuit is in relation to claims that Apple infringed on the University’s patents with some of the processors used in the iPhone product line.
The $506 million fine includes an additional $272 million, covering claims that Apple continued to infringe on the patents until they expired last year. Apple has already given the clearest indication that it will appeal the jury verdict.