Nokia Corp on Tuesday said it has agreed to settle all patent litigations with iPhone-maker Apple Inc , a move that will bolster the Finnish's firm profitability in the second quarter.
"Nokia announced that it has signed a patent licence agreement with Apple," the Finnish cellphone-maker said in a statement.
The agreement will result in the settlement of all patent litigation between the companies, including the withdrawal by Nokia and Apple of their respective complaints to the US International Trade Commission.
"We are very pleased to have Apple join the growing number of Nokia licencees. This settlement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licencing opportunities in the mobile communications market," Nokia President and CEO Stephen Elop said.
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Financial details were not disclosed, but Apple will make a one-time payment to Nokia as well royalties for the term of the agreement.
The deal is expected to have a positive financial impact on Nokia's recently revised outlook for the second quarter of 2011. It will bolster the company's devices and services unit's profitability.
The two mobile-phone makers have been in litigation since October, 2009, when Nokia filed a lawsuit accusing Apple of infringing upon 10 patents. In December, 2009, Apple filed a countersuit charging Nokia with infringing 13 Apple patents related to the iPhone.
In March, 2011, Nokia filed an additional complaint with the US Trade Commission saying that Apple had infringed upon Nokia patents in virtually all of its products.