Patent row: Nokia scores a rare win over rival Apple

Nokia notched up a rare victory against arch-rival Apple as the iPhone maker agreed to settle a long-running row over patents. Nokia said on Tuesday the deal would boost second-quarter earnings, having warned at the end of May that it would miss targets. The war hots up

Nokia notched up a rare victory against arch-rival Apple as the iPhone maker agreed to settle a long-running row over patents. Nokia said on Tuesday the deal would boost second-quarter earnings, having warned at the end of May that it would miss targets.

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Shares in the struggling cellphone maker rose 3%. Analysts welcomed the news and said it would help Nokia concentrate on core business at a time when it faces huge challenges.

"This is the first positive news from Nokia for a long time. They can both focus on their businesses now, and the dispute was settled to Nokia's advantage," said Mikael Rautanen, analyst at Inderes in Helsinki.

"The deal structure - a one-time payment as well as running royalties - suggests a fairly good outcome for Nokia," said Florian Mueller, independent specialist and blogger on patent battles.

"Maybe Nokia could have continued to play hardball and got an even better deal if it didn't face the challenges it undoubtedly has. But this looks a fairly important victory," Mueller said.

An Apple spokesman confirmed the deal on Tuesday.

Nokia, which has said it will be more aggressive in licensing its patents, flagged further legal battles were ahead. "This settlement .... enables us to focus on further licensing opportunities in the mobile communications market," CEO Elop said.