Apple and Nokia settled a legal dispute on Tuesday over the right of the iPhone maker to use patents and other intellectual property owned by the Finnish telecommunications company.

The move comes less than six months after Apple said that it would no longer pay to use Nokia’s patents, many of which are built into Apple’s suite of products, accusing the Finnish company of extortion.

In response, Nokia filed lawsuits in 11 countries, including Germany and the United States, aiming to defend its intellectual property. Nokia said that Apple should pay for technology used in smartphones, tablets and other devices.

That tug of war, however, is now over.

On Tuesday, the companies said that they had settled all of the lawsuits, and that they had signed a new patent agreement under which Apple will start paying royalties to Nokia from the second quarter of 2017. The companies did not disclose the financial terms of the agreement.</s>Apple and Nokia have agreed to multi-year patent license after settling all the patent dispute litigations they had between them. This announcement has been made by the companies after compromising with this intellectual property conflict.

Regarding this agreement, Maria Varsellona, Chief Legal Officer at Nokia, says, "This is a meaningful agreement between Nokia and Apple." Maria stated that this new agreement will make these two companies to become business partners instead of being adversaries. According to her, this partnership is for a betterment of the companies by working towards benefiting the customers.

Jeff Williams, Apple's chief operating officer, says in a statement, "We are pleased with this resolution of our dispute, and we look forward to expanding our business relationship with Nokia."

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According to this agreement, Nokia will provide few network infrastructure product and also services to Apple. On the other hand, Apple is said to resume Nokia digital health products in both the retail and online stores of Apple. It also looks like Apple and Nokia are planning future collaboration in digital health segment.

Basil Alwan, President of Nokia's IP/Optical Networks business, says, "This agreement will strengthen our collaboration. We look forward to supporting Apple." To ensure the good-going relationship between these two companies, the regular summits will be held between top executives.

During this term of an agreement, Nokia will get an up-front cash payment from Apple along with some additional revenues. The complete information regarding this is not yet disclosed. This makes Nokia update its capital structure optimization program along with its Q3 results of 2017.</s>Nokia has settled its legal battle with Apple with a new patent licence agreement and also signed a business deal with the US giant, surprising investors who had expected the dispute to drag on.

The companies said that Nokia would receive an upfront cash payment and additional revenues from Apple starting from the current quarter, without giving details. Analysts said the revenue was likely to be far higher than a previous deal.

Nokia shares, which fell in December when the patent dispute was announced, jumped as much as 8% to their highest since February 2016 before paring some gains.

“We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia,” Apple chief operating officer Jeff Williams said in a joint statement from the companies.

A previous patent license contract between the companies expired last year, and both sides took legal action in December. Apple complained of being overcharged and Nokia responded by accusing Apple of violating technology patents.

In the absence of a new deal, Nokia cut its annual run-rate forecast in December for patent and brand licensing sales to €800m from €950m previously. In its latest quarterly report released in April, Nokia stopped giving an annual run-rate forecast altogether.

“[The agreement] moves our relationship with Apple from being adversaries in court to business partners,” Nokia’s chief legal officer Maria Varsellona said in a statement.

Analysts were surprised by the relatively quick resolution, as they had feared a protracted legal dispute.

“For Nokia, it’s good news they got this out of the way, but we still have to wait for details about the financial impact,” said OP Equities analyst Hannu Rauhala.

“The previous annual rate was €150m, so I assume this to be more, around €500m.”

Under the new business agreement, Nokia said it would provide network products and services to Apple while Apple would resume carrying Nokia’s digital health products in its retail and online stores. The firms will also look into further collaboration in digital health, Nokia said. Mr Rauhala said Apple might have been willing to settle with Nokia as the US company’s patent battle with chipmaker Qualcomm has escalated.

Inderes analyst Mikael Rautanen said Nokia’s aim to expand its sales of network equipment sales beyond telecom operators to global internet and technology giants may also have played a part in the resolution of the dispute.</s>HELSINKI: Apple has settled a patent dispute with Finnish telecom equipment maker Nokia and agreed to buy more of its network products and services, sending Nokia shares up 7 percent.

The deal means Nokia will get bigger royalties from Apple for using its mobile phone patents, helping offset the impact of waning demand for its mobile network hardware.

Such legal battles are common in the industry but can drag on for years and analysts had not been expecting such a quick resolution to the dispute that started in December.

Under the deal announced in a joint statement from the companies on Tuesday, Nokia will also supply network infrastructure products to Apple, and Apple will resume sales of Nokia's digital health products in retail and online stores and look at further collaboration in health.

Digital health is one of the areas Nokia is targeting as it tries to develop new businesses to offset the industry-wide slump in demand for network equipment. Last year, Nokia bought France's Withings S.A., a small firm with products such as activity trackers and baby monitors built on digital platforms.

"There could emerge big future value from this as Apple could become an important distribution channel," said Handelsbanken analyst Daniel Djurberg, who has an "accumulate" recommendation for Nokia shares.

"I have not given any value so far for Nokia's digital health business, but might apply an option value to it."

Nokia Chief Executive Rajeev Suri told the company's annual general meeting later on Tuesday that the deal would help expand network sales beyond telecom operators to global internet and technology giants.

"(The deal) involves a business collaboration ... in particular in areas of IP and optical equipment, which is quite key to webscale players when they build their data centres," he said. "It's a good deal, a multi-year licensing deal, and I love it that it has an industrial deal and aspect to it."

Under the patent licence agreement, Nokia will receive a "significant" upfront cash payment and additional revenues from Apple starting from the current quarter. The companies did not give further details but analysts said the revenue was likely to be far higher than a previous deal.

Inge Heydorn, fund manager at Sentat Asset Management, said it was a smart move to collaborate on digital health products.

"It's interesting for Nokia in a five- to 10-year perspective since I think it will be hard to be profitable within mobile infrastructure," said Heydorn, whose firm does not hold any shares in Nokia.

Nokia shares, which fell in December when the patent dispute was announced, jumped to their highest since February 2016 and were up 6.7 percent at 5.89 euros by 1509 GMT.

A previous patent licence contract between the companies expired last year, and both sides took legal action in December. Apple complained of being overcharged and Nokia responded by accusing Apple of violating technology patents.

In the absence of a new deal, Nokia cut its annual run-rate forecast in December for patent and brand licensing sales to 800 million euros (US$900 million) from 950 million euros previously. In its latest quarterly report released in April, Nokia stopped giving an annual run-rate forecast altogether.

"(The agreement) moves our relationship with Apple from being adversaries in court to business partners," Nokia's Chief Legal Officer Maria Varsellona said in a statement.

Analysts were surprised by the relatively quick resolution of the dispute between Apple and Nokia.

"Nokia told analysts in April don't calculate on any licence revenue from Apple, not even in 2018, so this is a positive surprise. It will also limit Nokia's legal expenses," said Djurberg who said he would probably raise his Nokia estimates.

"For Nokia, it's good news they got this out of the way, but we still have to wait for details about the financial impact," said OP Equities analyst Hannu Rauhala.

"The previous annual rate was 150 million euros, so I assume this to be more, around 500 million euros."

Rauhala said Apple might have been willing to settle with Nokia as the U.S. company's patent battle with chipmaker Qualcomm Inc has escalated.

Patent royalties represent only a sliver of Nokia's overall revenue, more than 90 percent of which comes from telecoms network equipment. But licensing payments are highly profitable and the network business is suffering an industry-wide slump.

Nokia's patents cover technology that reduces the need for hardware components in a phone, conserves battery life, increases radio reception, helps in recovering lost phones and enables voice recognition, among other features.

Once the world's dominant cellphone maker, Nokia sold its handset business to Microsoft in 2014 to focus on its network business and large portfolio of mobile device patents.

Nokia's total sales in 2016 were about 24 billion euros.</s>Nokia (NOKIA.HE) has settled its legal battle with Apple (AAPL.O) with a new patent license agreement and also signed a business deal with the US giant, surprising investors who had expected the dispute to drag on.

The companies said on Tuesday that Nokia would receive an upfront cash payment and additional revenues from Apple starting from the current quarter, without giving details. Analysts said the revenue was likely to be far higher than a previous deal.

Nokia shares, which fell in December when the patent dispute was announced, jumped as much as 8 percent to their highest since February 2016 and were 6.5 percent higher at 5.88 euros by 0848 GMT.

"We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia," Apple Chief Operating Officer Jeff Williams said in a joint statement from the companies.

A previous patent license contract between the companies expired last year, and both sides took legal action in December. Apple complained of being overcharged and Nokia responded by accusing Apple of violating technology patents.

In the absence of a new deal, Nokia cut its annual run-rate forecast in December for patent and brand licensing sales to 800 million euros ($900 million) from 950 million euros previously. In its latest quarterly report released in April, Nokia stopped giving an annual run-rate forecast altogether.

"(The agreement) moves our relationship with Apple from being adversaries in court to business partners," Nokia's Chief Legal Officer Maria Varsellona said in a statement.

Analysts were surprised by the relatively quick resolution, as they had feared a protracted legal dispute.

"For Nokia, it's good news they got this out of the way, but we still have to wait for details about the financial impact," said OP Equities analyst Hannu Rauhala.

"The previous annual rate was 150 million euros, so I assume this to be more, around 500 million euros."

Under the new business agreement, Nokia said it would provide network products and services to Apple while Apple would resume carrying Nokia's digital health products in its retail and online stores. The firms will also look into further collaboration in digital health, Nokia said.

Rauhala said Apple might have been willing to settle with Nokia as the US company's patent battle with chipmaker Qualcomm Inc (QCOM.O) has escalated.

Inderes analyst Mikael Rautanen said Nokia's aim to expand its sales of network equipment sales beyond telecom operators to global internet and technology giants may also have played a part in the resolution of the dispute.

Patent royalties represent only a sliver of Nokia's overall revenue, more than 90 percent of which comes from telecoms network equipment. But licensing payments are highly profitable and the network business is suffering an industry-wide slump.

Nokia's patents cover technology that reduces the need for hardware components in a phone, conserves battery life, increases radio reception, helps in recovering lost phones and enables voice recognition, among other features.

Once the world's dominant cellphone maker, Nokia sold its handset business to Microsoft (MSFT.O) in 2014 to focus on its network business and large portfolio of mobile device patents.

Nokia's total sales in 2016 were about 24 billion euros.</s>Apple and Nokia settled their patent licensing dispute on Monday and are besties again. Apple paid Nokia an undisclosed sum of money and agreed to ongoing payments, and Nokia is “providing certain network infrastructure product and services to Apple.”

Withings smart scales, heart rate monitors, and other health products will return to Apple stores, too. Nokia owns the Withings brand, and Apple stopped selling the products during the patent licensing dispute.

Now that the two companies are back on good terms, Nokia is giving the just announced deal a thumbs up. Nokia’s Chief Legal Officer Maria Varsellona said,

Nokia filed patent infringement complaints against Apple in December 2016 after the two failed to come to terms over licensing payments. Apple claimed Nokia was demanding unfairly high licensing fees, and Nokia said it spent years trying to reach an agreement with the iPhone maker.

The patents in question cover technologies used on the iPhone such as antennas, chipsets, and more.

Apple’s statement on the agreement came from chief operating officer Jeff Williams and was less enthusiastic. “We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia,” he said.

Apple and Nokia are also considering working together on what they’re calling “digital health initiatives.” They aren’t elaborating on what that collaboration may entail.</s>Nokia and Apple announced today that they have settled all litigation related to their intellectual property dispute and agreed a multi-year patent license.Under the collaborative agreement, Nokia said it will provide "certain network infrastructure products and services" to Apple. In turn, Apple agreed to return all Nokia health products to Apple retail and online stores.In December of last year, Nokia filed multiple complaints against Apple in several countries, accusing the Cupertino company of infringing several of its patents. In response, Apple sued Nokia in an antitrust lawsuit against several patent assertion entities which it claimed were trying to collect excessive fees for Nokia patents. Apple had established FRAND (Fair, Reasonable, and Non-Discriminatory) deals with Nokia, but by transferring patents to patent holding companies, additional royalties can be demanded.Just days after the legal dispute flared up, Apple pulled all Withings-branded, Nokia-owned accessories from its online and retail stores around the world. Nokia stood its ground, however, claiming that it had not been able to reach a licensing agreement with Apple and therefore had to defend its rights.Following the latest development, Nokia will receive an up-front cash payment from Apple with additional revenues forthcoming. The figure remains undisclosed, but net sales in Nokia patent licensing will reflect the value of the agreement, while Nokia expects related revenues to be reflected in the second quarter of 2017. No other details of the terms of the agreement have been released."We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia," said Jeff Williams, Apple's chief operating officer.</s>Apple and Nokia officially buried the hatchet on Tuesday.

In a joint statement, the two companies announced they have settled all patent disputes and agreed new terms that should see them work together harmoniously for many years to come.

Under the new agreement, Nokia will provide network infrastructure products and services to Apple. Apple, for its part, will resume selling Nokia Health products, formerly sold under the Withings brand, in its stores around the world. Better still, the two are set to work together on new digital health initiatives.

Apple pulled all Withings products from its stores in December 2016 and accused Nokia of "using the tactics of a patent troll," when the Finnish company announced it was suing the California tech giant over 32 phone patents. It marks a resolution to a dispute that has been relatively short-lived, as patent battles go, and will hopefully result in some cool new health tech products or services from the two companies.

The exact terms of the deal are confidential, but Nokia is set to receive an up-front cash payment from Apple.

"We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia," said Jeff Williams, Apple's chief operating officer.

"This agreement will strengthen our collaboration," added Basil Alwan, president of Nokia's IP/Optical Networks business. "We look forward to supporting Apple."

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Finland's Nokia said on Tuesday it has settled its patent dispute with Apple and also signed a business collaboration deal with the U.S. company.

HELSINKI: Finland's Nokia said on Tuesday it has settled its patent dispute with Apple and also signed a business collaboration deal with the U.S. company.

Nokia said it would receive an up-front cash payment and additional revenues from Apple, but did not specify the details of the patent deal.

Revenues from the agreement, as well as a non-recurring catch-up revenue, will start running from this quarter, Nokia said.

Under the business agreement, Nokia said it would provide network infrastructure products and services to Apple while Apple would resume carrying Nokia's digital health products in its retail and online stores.

Nokia shares opened 5 percent higher on the news in the early Helsinki trade.</s>Apple Inc. and Nokia Corp. settled dueling lawsuits over what Apple should pay for intellectual property used in its iPhone, a surprisingly quick end to what analysts had said could have been years of litigation.

The companies didn't disclose financial terms, but said Tuesday that Apple has agreed to make an upfront cash payment to Nokia, with additional payments over the term of the "multiyear" deal. The companies also said that Apple will resume selling Nokia's digital health products -- which include Withings-branded connected objects -- in Apple retail and online stores. Nokia has said it is devoting considerable investment in that product line.

The quick resolution to the deal surprised patent experts who had been expecting a drawn-out fight over multiple countries. The deal could also help cash flow and product sales for Nokia, whose stock rose more than 6% in early afternoon trading.

Analysts said the agreement frees up legal resources for Apple, which is locked in an intensifying patent fight with Qualcomm Inc. over how much Apple should pay for intellectual property used in Apple products.

"It sounds like business considerations other than patents played a role here," said Florian Mueller, an independent intellectual property analyst. He said: "This deal should allow Apple to focus on the dispute with Qualcomm, which is economically and strategically much bigger."

At the end of last year, Nokia confirmed it had filed actions against Apple in 11 countries in total, saying the U.S. company violated 40 of its patents covering technologies such as display, user interface, software, antenna, chipsets and video coding.

At the same time, Apple filed a suit in the U.S. District Court for the Northern District of California, arguing that Nokia excluded some patents from a 2011 agreement and transferred them to third-party companies "to be used for extorting excessive royalties" from Apple. It asked the court to award damages and rule that Nokia breached its contract.

Write to Dominic Chopping at dominic.chopping@wsj.com and Sam Schechner at sam.schechner@wsj.com
Apple Inc. and Nokia agree to increase their partnership after settling a patent dispute.