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So, Nintendo eyed the possibility they might lose the appeal case, and decided to settle out of court?

That's usually not like them, but Phillips aren't newcomers to this game. They fought dirty to become the electronics giant they were before Samsung wiped them off the map.

This "patent portfolio cross licensing agreement" is very unlikely to include Mario and Zelda, though.

It's probably all corporate spin on the fact that Nintendo had to acknowledge some of Phillips' patents as well as their lawyers as strong enough to be a threat, unless deals were made.