by CannedTuna
Timing of Nokia agreement suggests a ‘favorable outcome’ for Apple
[Via AppleInsider]
Though Apple will pay Nokia a one-time sum and ongoing royalties as a result of their new settlement, one analyst believes the timing of the agreement suggests Apple was able to negotiate a favorable outcome.
[More]
Apple wins. Nokia wins. And Microsoft scores at the buzzer!
What a difference a few years makes! Nokia, once the top cell phone maker, is now falling fast. Apple is rising. Nokia made a deal with MS to use Windows on its phones sometime in the future. Nokia has new management. MS buys Skype.
MS is supposedly paying Nokia billions to get Windows on Nokia’s phones. Why not just buy Nokia? Maybe that is what MS would like.
But these lawsuits might hamper that. Not only could Nokia lose, really hurting their IP, but the original purpose for all this may have changed.
Supposedly the suits came about because Nokia wanted more from Apple for licensing the IP than it charged others for the same IP. Because of the way these pools of patents were licensed, there was a requirement to charge Fair and normal licensing fees.
Apple felt Nokia was making an exception for them and refused to pay for the licenses, starting all this cascade of lawsuits.
Back when they started, it was to pressure Apple to give up IP of its own. But in the years since, Nokia has bleed money while Apple just hauls it in. The longer the cases went on, the worse the balance sheet for Nokia.
No one wants to buy a company with lawsuits like this hanging over everyone.
Just as it is easier to fix the roof before you sell a house, Nokia removed some doubt from its balance sheet, adding a lot of dollars to its bottom line. Now they have settled. They get a big paycheck and future licensing, just like everyone else does.
Now Nokia looks much better for its future purchase.
As I wrote earlier, MS needs to have a mobile agenda every bit as strong as Apple, especially if it wants to control its future. Thus it needs to have the OS, the hardware and the apps to allow users to carry on a totally mobile lifestyle beholden to no wireless carriers.
Apple has iOS, the iPhone/iPad and FaceTime. MS has Windows and now Skype. They need the hardware under their control.
I expect them to announce the purchase of Nokia in the next few months.
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