Nokia said on Tuesday it had ended a legal battle with Apple, which will pay an undisclosed one-off fee and ongoing royalties to the Finnish firm. Nokia signed a patent license agreement with Apple, which will result in settlement of all patent litigation between the companies, including the withdrawal by Nokia and Apple of their respective complaints to the US International Trade Commission, the company said.

The financial structure of the agreement consists of a one-time payment payable by Apple and on-going royalties to be paid by Apple to Nokia for the term of the agreement. The specific terms of the contract are confidential.

"We are very pleased to have Apple join the growing number of Nokia licensees," said Stephen Elop, president and chief executive officer of Nokia. "This settlement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market."

Apple and Nokia have been engaged in legal battles since October 2009, when Nokia sued Apple in the United States, arguing the iPhone-maker was using technologies patented by Nokia.

Nokia expects the agreement to have a positive financial impact on Nokia's recently revised outlook for the second quarter 2011 of around break-even non-IFRS operating margin for Devices & Services.

Alhough Nokia has won a legal victory, it still trying to to catch up with Apple in the high end of the smartphone market, where it has fallen behind both Apple's iPhone and Google's Android devices. Earlier this week Nomura forecast Nokia would lose its position as the world's largest smartphone maker this quarter to Samsung Electronics and that Apple would surpass it next quarter.