Nokia notched a valuable win against rival Apple today with the US company agreeing to pay the Finnish handset maker a one-time sum to settle long-standing patent disputes as well as royalties for current licenses. The companies have been locked in a long-running legal battle over patent claims, with each side accusing the other of infringing on patents that cover features such as swiping gestures on touch screens. Nokia said that the deal "will result in 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."
Market watchers say today's settlement is crucial for Nokia, which has been trying to restrict unlawful use of its innovation base as it struggles amid stiff competition in the smartphone sector. Among other things, it claimed Apple's touch-screen iPhone used technology that was patented by the Finnish company 10 years before the 2007 launch of the Apple device. The financial details of today's deal were not disclosed but Nokia said the settlement will have a positive impact on its second quarter result. Nokia shares were up 2% to $6.17 in afternoon trading in Helsinki. (Read more Nokia stories.)