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Apple has agreed to pay Nokia an unspecified one-time payment on top of royalties, besides also collaborating together in developing smart wearables.

After the initial battle by Apple and Nokia, the doves are now out with both sides having reached an amicable settlement in their patent dispute. The exact terms of the agreement aren’t being disclosed at the moment though it is learned that Apple will be making a lump sum one-time payment as well as royalties at a regular interval.

Nokia had last year sued Apple over violation of 32 patents related to smartphone features such as ‘display, user interface, software, antenna, chipsets and video coding’. The iPhone maker had then filed a counter lawsuit the same day claiming Nokia is acting as a patent troll and is refusing to license the particular patents on fair terms.

As part of the settlement, Nokia will also be able to sell its branded wearable devices in the Apple Store. That is not all as both the companies also stated they are keeping options open of collaborating in the smart wearable segment.

Apple earlier had stopped paying the royalties it owes to Nokia for the use of several of the latter’s patents after the deal timed out last year. Apple then had even taunted the Finnish company claiming the latter lacks the guts to take on Apple’s products and has hence taken the relatively easier route of ‘exploiting the patents that remain from its years as a successful cell phone supplier’.

The once formidable cell phone maker, Nokia slowly drifted into oblivion after it was acquired by Microsoft in 2013. However, it continues to hold on to a treasure trove of patents, licensing revenue from which continues to be one of its main sources of income. In fact, Nokia’s patent portfolio got a major boost after it acquired the French telecom company Alcatel-Lucent last year.

Apple still has a formidable challenger in the form of Qualcomm. In fact, the stakes could be higher in Apple’s legal battle with Qualcomm given that the latter is also seeking to prevent the import of the upcoming anniversary iPhone version into the US.

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