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. The deal is expected to have a positive financial impact on Nokia's recently revised outlook for the second quarter 2011 of around break-even non-IFRS operating margin.
"We are very pleased to have Apple join the growing number of Nokia licensees," said Stephen Elop, president and chief executive officer of Nokia. "This settlement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market."
Apple spokesman said that they are glad to put the despute behind and it will help them to focus more on business.
"Apple and Nokia have agreed to drop all of our current lawsuits and enter into a license covering some of each others' patents, but not the majority of the innovations that make the iPhone unique," said an Apple spokesperson.
Nokia filed law suit against Apple in 2009 to the International Trade Commission claiming that the iconic Apple iPhone had violated 10 patents. The Apple counter-sued and legal battle was continuing till the date.