The world's leading mobile phone maker Nokia has notched up a rare victory against arch-rival Apple as the iPhone maker agreed to settle a long-running dispute over patents.

Nokia said on Tuesday that Apple had agreed to pay royalties for the use of Nokia technology in its devices, ending all of their 46 ongoing patent disputes.

Apple and Nokia have been locked in a legal tussle since October 2009, when Nokia sued Apple in the US, arguing the iPhone-maker was getting a "free ride" on technologies patented by Nokia.

"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, adding that the details of the contract were confidential.

The deal constitutes a massive victory for Nokia and ends years of tit-for-tat suits filed by the two companies, with both agreeing to wi