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Last updated at 15:25 BST, Wednesday, 15 June 2011

Nokia and Apple settle

Summary

15 June 2011

Two of the world's largest technology companies, Nokia and Apple, have agreed a deal ending a legal dispute over intellectual property rights. The arch rivals, in effect, accused each other of stealing important smart phone technologies.

Reporter:
Mark Gregory

Nokia company sign on the outside of one of their shops

Apple agreed to pay a lump sum to Nokia

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Report

Two years ago Nokia went to court in the US claiming Apple had infringed its patents in areas like touch screen technology, caller ID and wi-fi. Apple then counter sued.

This settlement ends all outstanding litigation.

It appears to be a victory for Nokia as Apple has agreed to pay a lump sum and continuing royalty payments. The amounts have not been disclosed.

But the legal deal is unlikely to change anything in the market place where Nokia smart phones are struggling in face of competition from the Apple iPhone and handsets powered by Google software.

In a carefully worded statement, Apple acknowledges reaching a licensing deal with Nokia but claims it does not cover the majority of innovations that in its words make the iPhone unique.

Decoded that means Apple denies stealing the technologies that made the iPhone a success.

Mark Gregory, BBC Technology Correspondent

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Vocabulary

infringed its patents

used its legally recognised technology without permission

counter sued

took legal action against someone who had taken legal action against them

outstanding litigation

legal disputes which are not yet settled

a lump sum

a large amount of money paid at one time

royalty payments

money paid to use another company's ideas or technology

disclosed

made public

struggling in face of

finding it difficult to be successful because of

a carefully worded statement

an announcement expressed in a way that does make them sound guilty

innovations

new technological and design developments

decoded

Expressed in simple language