Nokia may receive 608 million USD royalties

Reached a settlement with Apple's patent lawsuit according to Reuters, Nokia said the lawsuit with Apple has been terminated, and the latter will pay a one-time fee and royalties to existing concessions. An Apple spokeswoman said: "Apple and Nokia have reached a consensus to end all of their current lawsuits and finalize mandates covering some of the patents, but not the vast majority of the iphone's unique technology." "We are happy to turn this page and return to the focus of our respective business," the spokesman said. "The two companies have been involved in lawsuits since October 2009, and Nokia has sued Apple for free use of Nokia's patented technology," he said.　　Nokia said that closing the lawsuit would boost its second-quarter profit, but said details were kept secret. Florian Mueller, an independent expert on patent litigation, says Nokia has no doubt a lot of challenges, and if it does not meet these challenges, perhaps Nokia could have taken a tough stance in exchange for better conditions.　　But the result seems to be a very important victory.　　As soon as they heard that Nokia and Apple were settling patent lawsuits, analysts began to calculate the impact of the case on Nokia's revenues. In a study briefing, Kei Cosselt, an analyst at Deutsche Bank, Kaikorschelt that Nokia could get a total of $608 million in royalties from Apple in the second quarter.　　The royalties are calculated by calculating all of its sales at an average sales price for the total of 110 million iphones sold by Apple up to the first quarter, and then extracting a 1% royalties from it. This figure is roughly equivalent to the involving of previous patent litigation cases. In April 2009, Qualcomm agreed to pay 891 million USD royalties to Broadcom, a communications semiconductor company, in four years. In December 2009, Samsung and LG both agreed to pay Kodak 550 million dollars and 414 million of dollars in royalties to reconcile their patent lawsuits.　　In addition, Cosselt said, under the settlement agreement, Nokia may also receive 137.6 million of dollars of regular revenue from Apple each quarter. Patrick Standaert, an analyst at Morgan Stanley, Patrick Standart that Nokia's win over Apple's patent lawsuit does not change its long-term financial position. "Nokia has reached a settlement with Apple's patent lawsuit, which will allow Nokia to gain sustained royalties and indirectly share the fruits of Apple's success." But Nokia is a product-focused company and must see its new smartphone strategy succeed in building confidence in its long-term financial position. Nokia's win over the patent lawsuit has little impact on its long-term financial position. "(compiled journalist Li Guangji)