Rodman & Renshaw Reports Nokia Resolves Patent Litigation With Apple

According to Rodman & Renshaw, Nokia NOK has resolved all patent litigation with Apple AAPL. Rodman & Renshaw said that the patent litigation dates back to 2009 when Nokia filed suit against Apple for a number of IPR (intellectual property rights) issues and Apple counter sued. "Under terms of the agreement, Apple has agreed to make a one-time catch-up payment for past sales and pay an ongoing royalty payment to Nokia. Although financial details were not disclosed, Nokia did state that it would aid its Devices & Services operating margin during the 2Q. Recall that Nokia had previously stated that D&S operating margins would be roughly breakeven. It is worth noting that royalty payments hold a near-100% margin. Maintain Market Outperform rating and $10 price target, which is based on 13X our 2012 U.S-based EPS of $0.75." Nokia closed yesterday at $6.11.