Nokia Corporation Stock Exchange ReleaseMay 23, 2017 at
09:50 (CET +1)
Nokia and Apple sign patent license and business
collaboration agreement, settle all litigation
Cupertino, California and Espoo, Finland - Nokia and Apple
announced today that they have settled all litigation related to
their intellectual property dispute and agreed a multi-year patent
license.
"This is a meaningful agreement between Nokia and Apple," said
Maria Varsellona, Chief Legal Officer at Nokia, responsible for
Nokia's patent licensing business. "It moves our relationship with
Apple from being adversaries in court to business partners working
for the benefit of our customers."
Under a business collaboration agreement, Nokia will be
providing certain network infrastructure products and services to
Apple. Apple will resume carrying Nokia digital health products
(formerly under the Withings brand) in Apple retail and online
stores, and Apple and Nokia are exploring future collaboration in
digital health initiatives. Regular summits between top Nokia and
Apple executives will ensure that the relationship works
effectively and to the benefit of both parties and their
customers.
"We are pleased with this resolution of our dispute and we look
forward to expanding our business relationship with Nokia," said
Jeff Williams, Apple's chief operating officer.
"This agreement will strengthen our collaboration," said Basil
Alwan, President of Nokia's IP/Optical Networks business. "We look
forward to supporting Apple.
While details of the agreement remain confidential, Nokia will
receive an up-front cash payment from Apple, with additional
revenues during the term of the agreement.
The value of the agreement will be reflected partially as patent
licensing net sales in Nokia Technologies and partially as net
sales in other Nokia business groups. Nokia will follow its
existing practices for disclosing patent licensing revenue in its
quarterly announcements and expects that revenues for the agreement
will start to be recognized in the second quarter of 2017,
including an element of non-recurring catch-up revenue.
Due to the up-front cash payment from Apple, Nokia intends to
provide a comprehensive update of its capital structure
optimization program in conjunction with its third quarter 2017
results.
About Nokia Nokia is a global leader innovating the
technologies at the heart of our connected world. Powered by the
research and innovation of Nokia Bell Labs, we serve communications
service providers, governments, large enterprises and consumers,
with the industry's most complete, end-to-end portfolio of
products, services and licensing.
From the enabling infrastructure for 5G and the Internet of
Things, to emerging applications in virtual reality and digital
health, we are shaping the future of technology to transform the
human experience. www.nokia.com
Media Enquiries: Nokia Communications Phone: +358 (0) 10
448 4900 E-mail: press.services@nokia.com
FORWARD-LOOKING STATEMENTS
It should be noted that Nokia and its businesses are exposed to
various risks and uncertainties and certain statements herein that
are not historical facts are forward-looking statements, including,
without limitation, those regarding: A) our ability to integrate
Alcatel Lucent into our operations and achieve the targeted
business plans and benefits, including targeted synergies in
relation to the acquisition of Alcatel Lucent; B) expectations,
plans or benefits related to our strategies and growth management;
C) expectations, plans or benefits related to future performance of
our businesses; D) expectations, plans or benefits related to
changes in organizational and operational structure; E)
expectations regarding market developments, general economic
conditions and structural changes; F) expectations and targets
regarding financial performance, results, operating expenses,
taxes, currency exchange rates, hedging, cost savings and
competitiveness, as well as results of operations including
targeted synergies and those related to market share, prices, net
sales, income and margins; G) expectations, plans or benefits
related to any future collaboration or to the business
collaboration agreement and the patent license agreement between
Nokia and Apple announced on May 23, 2017, including income to be
received under any collaboration or partnership or agreement; H)
timing of the deliveries of our products and services; I)
expectations and targets regarding collaboration and partnering
arrangements, joint ventures or the creation of joint ventures,
including the creation of the new Nokia Shanghai Bell joint venture
and the related administrative, legal, regulatory and other
conditions, as well as our expected customer reach; J) outcome of
pending and threatened litigation, arbitration, disputes,
regulatory proceedings or investigations by authorities; K)
expectations regarding restructurings, investments, capital
structure optimization efforts, uses of proceeds from transactions,
acquisitions and divestments and our ability to achieve the
financial and operational targets set in connection with any such
restructurings, investments, capital structure optimization
efforts, divestments and acquisitions; and L) statements preceded
by or including "believe," "expect," "anticipate," "foresee,"
"sees," "target," "estimate," "designed," "aim," "plans,"
"intends," "focus," "continue," "project," "should," "will" or
similar expressions. These statements are based on management's
best assumptions and beliefs in light of the information currently
available to it. Because they involve risks and uncertainties,
actual results may differ materially from the results that we
currently expect. Factors, including risks and uncertainties that
could cause these differences include, but are not limited to: 1)
our ability to execute our strategy, sustain or improve the
operational and financial performance of our business and correctly
identify and successfully pursue business opportunities or growth;
2) our ability to achieve the anticipated benefits, synergies, cost
savings and efficiencies of the acquisition of Alcatel Lucent, and
our ability to implement our organizational and operational
structure efficiently; 3) general economic and market conditions
and other developments in the economies where we operate; 4)
competition and our ability to effectively and profitably compete
and invest in new competitive high-quality products, services,
upgrades and technologies and bring them to market in a timely
manner; 5) our dependence on the development of the industries in
which we operate, including the cyclicality and variability of the
information technology and telecommunications industries; 6) our
global business and exposure to regulatory, political or other
developments in various countries or regions, including emerging
markets and the associated risks in relation to tax matters and
exchange controls, among others; 7) our ability to manage and
improve our financial and operating performance, cost savings,
competitiveness and synergies after the acquisition of Alcatel
Lucent; 8) our dependence on a limited number of customers and
large multi-year agreements; 9) exchange rate fluctuations, as well
as hedging activities; 10) Nokia Technologies' ability to protect
its IPR and to maintain and establish new sources of patent
licensing income and IPR-related revenues, particularly in the
smartphone market; 11) our ability to successfully realize the
expectations, plans or benefits related to any future collaboration
or to the business collaboration agreement and the patent license
agreement between Nokia and Apple announced on May 23, 2017,
including income to be received under any collaboration or
partnership or agreement; 12) our dependence on IPR technologies,
including those that we have developed and those that are licensed
to us, and the risk of associated IPR-related legal claims,
licensing costs and restrictions on use; 13) our exposure to direct
and indirect regulation, including economic or trade policies, and
the reliability of our governance, internal controls and compliance
processes to prevent regulatory penalties in our business or in our
joint ventures; 14) our ability to identify and remediate material
weaknesses in our internal control over financial reporting; 15)
our reliance on third-party solutions for data storage and service
distribution, which expose us to risks relating to security,
regulation and cybersecurity breaches; 16) inefficiencies,
breaches, malfunctions or disruptions of information technology
systems; 17) Nokia Technologies' ability to generate net sales and
profitability through licensing of the Nokia brand, particularly in
digital media and digital health, and the development and sales of
products and services, as well as other business ventures which may
not materialize as planned; 18) our exposure to various legislative
frameworks and jurisdictions that regulate fraud and enforce
economic trade sanctions and policies, and the possibility of
proceedings or investigations that result in fines, penalties or
sanctions; 19) adverse developments with respect to customer
financing or extended payment terms we provide to customers; 20)
the potential complex tax issues, tax disputes and tax obligations
we may face in various jurisdictions, including the risk of
obligations to pay additional taxes; 21) our actual or anticipated
performance, among other factors, which could reduce our ability to
utilize deferred tax assets; 22) our ability to retain, motivate,
develop and recruit appropriately skilled employees; 23)
disruptions to our manufacturing, service creation, delivery,
logistics and supply chain processes, and the risks related to our
geographically-concentrated production sites; 24) the impact of
litigation, arbitration, agreement-related disputes or product
liability allegations associated with our business; 25) our ability
to optimize our capital structure as planned and re-establish our
investment grade credit rating or otherwise improve our credit
ratings; 26) our ability to achieve targeted benefits from or
successfully achieve the required administrative, legal, regulatory
and other conditions and implement planned transactions, including
the creation of the new Nokia Shanghai Bell joint venture, as well
as the liabilities related thereto; 27) our involvement in joint
ventures and jointly-managed companies; 28) the carrying amount of
our goodwill may not be recoverable; 29) uncertainty related to the
amount of dividends and equity return we are able to distribute to
shareholders for each financial period; 30) pension costs, employee
fund-related costs, and healthcare costs; and 31) risks related to
undersea infrastructure, as well as the risk factors specified on
pages 67 to 85 of our 2016 annual report on Form 20-F under
"Operating and financial review and prospects-Risk factors" and in
our other filings with the U.S. Securities and Exchange Commission.
Other unknown or unpredictable factors or underlying assumptions
subsequently proven to be incorrect could cause actual results to
differ materially from those in the forward-looking statements. We
do not undertake any obligation to publicly update or revise
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent legally
required.
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