Leading mobile handset maker, Nokia announced on Tuesday that Apple, with which it is engaged in a legal battle over intellectual property, has agreed to pay royalties for using Nokia technology on apple devices.

The new understanding between the two companies will end all of their ongoing patent disputes. "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," Nokia said in a statement.

Nokia did not announce financial details of the deal saying they are confidential. The company also said that both the companies will withdraw all complaints they had filed with the US International Trade Commission.

Apple said in its won statement that the two companies have agreed to drop all lawsuits and enter into a license covering some other the patents. Apple pointed out that the agreement does not include other innovations that make the iPhone different and unique. "We're glad to put this behind us and get back to focusing on our respective businesses," Apple said.

The agreement comes after several lawsuits and counter lawsuits between the two majors. Nokia has filed 46 complaints against Apple, while the US technology major responded with several countersuits against the Finnish company.