Nokia financials reveal Apple’s royalty fee and some sobering truths


As summer began, Apple settled Nokia’s infringement lawsuit. Nokia’s current financials now reveal the amount of Apple’s one-time royalty fee, which was undisclosed at time of settlement. Bernstein had guessed $700M.  ZDNet estimated $600M. Now we know, it was no more than $600M.  Ironically and sadly, this infusion matched the profit loss Nokia has experienced in one year’s time. We have speculated that Android was the next target for Nokia, but they had better make it quick, as the hemorrhaging is of such magnitude their recent decision to switch to the Windows mobile operating system may not even have time to work. The loss of market share to Apple, now the leading unit seller as well as revenue producer in the space, is numbing.

The Nortel auction sale started IPBlog thinking of other companies that have lost their operations way but have valuable IP and require the time quick and successful litigation results will allow them to re-strategize. Short those quick proceeds, the Nortel experience proves there may be another way for Kodak, for example. Nokia is certainly part of the conversation, as is Motorola.

If the “C” suite or the respective boards of directors aren’t thinking about the true value of an organization’s  IP, investors are. The Wall Street Journal reports Motorola Mobility, for example, is being pressured by Carl Icahn to look at the business differently. "I am concerned that the tail is wagging the dog," Mr. Icahn said in an interview, "They should maximize the monetization without being overly concerned [about] the effects on the operating company."

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