Apple has settled a patent dispute with Finnish telecom equipment maker Nokia and agreed to buy more of its network products and services, sending Nokia shares up 7 percent.
The deal means Nokia will get bigger royalties from Apple for using its mobile phone patents, helping offset the impact of waning demand for its mobile network hardware.
Nokia shares, which fell in December due to the patent dispute, jumped 7.4 percent to 5.93 euros by 0717 GMT. Analysts said they had expected the legal dispute to drag on and were surprised by the relatively quick resolution.
“(The agreement) moves our relationship with Apple from being adversaries in court to business partners,” Nokia’s Chief Legal Officer Maria Varsellona said in a statement. A previous patent licence contract between the companies expired last year and both sides took legal action in December. Nokia accused Apple of violating technology patents and Apple complained of being overcharged.