Nokia settles 2G patent battle

Nokia has paid $253m in a settlement with InterDigital over a patent licensing agreement between the two companies signed back in 1999. 

However, Nokia seems to believe that it got off cheap, following a statement by its vice president of intellectual property rights.

"Our prior contract agreement required us to respect the settlements that Ericsson and Sony Ericsson entered in 2003, but there was a dispute about the impact those other settlements should have on Nokia," said Ilkka Rahnasto.

"This case demonstrates that legal disputes are sometimes necessary in order to lower unrealistic demands."

The dispute arose because Nokia was worried about InterDigital's licences for 2G products with Ericsson and Sony Ericsson. 

"Under the settlement agreements Nokia obtains a fully paid-up, perpetual, irrevocable licence to all of InterDigital's current patent portfolio, and any patents InterDigital may later acquire, for purposes of making or selling 2G products, including handsets and infrastructure," said a Nokia statement.

The settlement also resolves disputes related to all Nokia products up to the agreement date.