> Nokia’s pre-settlement market cap: $22.5 billion
> Nokia’s post-settlement market cap: $23.7 billion
> Increase in market value: $1.2 billion
Mobile phone powerhouses Nokia and Apple have finally settled after almost two years of patent litigation. Nokia claims that Apple has violated 46 of its patents, including touch scrolling and display illumination, according to the Wall Street Journal. The companies’ agreement involves an undisclosed one-time payment on the part of Apple, as well as ongoing royalties which will be paid to Nokia. While these numbers are being kept secret, the market must know it’s value. Since the settlment, Nokia’s market cap has moved up from $22.5 billion to $23.7 billion, increasing its value by roughly 5%.
This is a big move for Nokia, which has had difficulty infiltrating the growing, and increasingly crowded, smartphone market. Patent litigation can hinder the progress of competitors and, subsequently, improve the patent-owner’s own market share. Nokia’s legal actions against Apple have clearly benefited the company. Its success almost certainly spells bad news for Google’s Android too, the other smartphone leader. Android shares many similarities with Apple’s iPhone and may infringe on some of the patents Nokia holds.
Charles B. Stockdale
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