iPhones lose iPatent case

Apple to pay Nokia big settlement plus royalties after losing patent case | Technology | The Guardian: "The Finnish phone-maker Nokia could receive a one-off payment of more than €800m (£700m) from Apple and receive further royalties of €8 per iPhone sold in future, after winning a long-running patents case.

The company subsequently hinted that it may pursue makers of smartphones using Google's Android mobile operating system, of which 36m were sold in the first quarter of 2011.

The settlement signed on Tuesday related to patents for mobile technology that helped Apple to revolutionise the phone industry in 2007 when it launched the first iPhone.

Although terms of the settlement were not disclosed, previous patent licensing deals in the phone industry have been worth up to 5% of the price of the device involved. At €8, or $11.50 (£7), they would represent about 4.5% of the estimated average $264 cost price of an iPhone, which Apple sells to retailers and phone networks for an average of $660. Apple has sold 108m iPhones since their launch.

Nokia's shares rose by 3% as it said that the one-off payment, whose size was not revealed, will have 'a positive financial impact' on its upcoming quarterly results."