Nokia had alleged Apple was infringing its patents in the iPhone, iPad and other devices

Nokia and Apple have settled an almost two-year long legal battle over patents with an agreement that will see Apple pay a lump sum and ongoing royalties to the European cell-phone maker.

The financial terms and structure of the contract were not disclosed by Nokia.

“We are very pleased to have Apple join the growing number of Nokia licensees,” said Stephen Elop, Nokia’s president and CEO, in a statement.

The two companies have been engaged in patent disputes worldwide since October 2009, when Nokia filed a complaint against Apple with the U.S. District Court in Delaware, alleging that Apple’s iPhone infringed on Nokia telecommunication and wireless patents. The suit alleged Apple was infringing on ten Nokia patents covering wireless data, speech coding, security and encryption.

Since then, the legal battle has intensified, with the companies also filing complaints against each other with the U.S. International Trade Commission.

In March this year, Nokia expanded the ITC complaint to include an additional seven patents and alleged, “Apple infringes additional Nokia patents in virtually all of its mobile phones, portable music players, tablets and computers.”

The license agreement will settle all patent litigation between the companies, and the withdrawal of complaints in the U.S. ITC by Nokia and Apple, Nokia said.

Apple spokesman Alan Hely said the company is happy the dispute with Nokia is over, and that they can now get back to focusing on their respective businesses.

“Apple and Nokia have agreed to drop all of our current lawsuits and enter into a license covering some of each others’ patents, but not the majority of the innovations that make the iPhone unique,” Hely said.