Though Nokia and Microsoft's strategic partnership was announced back in February, it's taken until now for the two parties to make their new relationship legal.

Both companies have announced that the agreement designed to define their alliance moving forward has been signed.

What's more – and in something of a smart PR move – the two giants put pen to paper ahead of schedule.

Progress and power

"At the highest level, we have entered into a win-win partnership," said Nokia president and CEO Stephen Elop.

"It is the complementary nature of our assets, and the overall competitiveness of that combined offering, that is the foundation of our relationship."

Nokia claims that the agreement includes a declaration by both sides that they will work on the development of Windows Phone 7's ecosystem together.

Indeed, much progress on Nokia's first handsets has already been made, with a "portfolio of devices" set to benefit from key apps and services delivered via a joint outreach program to third-party developers.

Money from Microsoft

"Our agreement is good for the industry," added Microsoft CEO Steve Ballmer.

"Together, Nokia and Microsoft will innovate with greater speed, and provide enhanced opportunities for consumers and our partners to share in the success of our ecosystem."

The agreement splits the alliance into four broad areas, including many that focus on the money that's set to change hands between the two parties – Microsoft receiving royalties for every Nokia WP7 handset sold, with Nokia in turn picking up "payments measured in the billions of dollars".

Nokia will also benefit from money paid out to utilise its roster of intellectual properties, the company claims, enabling both parties to offer carriers and developers an even more engaging platform.

One of the main areas of the partnership focuses on combining Nokia's maps with Windows Phone 7's location-based elements. In response, Bing will reach across Nokia's range of services and – with advertising in tow – enable the Finnish firm to better monetise its maps business.

Building big

Most interesting, however, is the part of the agreement that deals with the ability for Nokia to add to Windows Phone 7's existing set up – a luxury not previously afforded any other manufacturers working on the platform.

Nokia claims it will build on top of the platform in areas such as imaging, while it will also serve up a new Nokia-branded app store that leverages the existing Windows Marketplace infrastructure.

The apps on board won't solely be for WP7, either. Apps designed for Symbian and Series 40 devices will also be pushed through the same portal – something that Nokia has touched on before when discussing Ovi Store's future.

As previously stated, the first fruits of this new partnership are still some way off, with Nokia aiming to ship its first WP7 handsets "in volume" in 2012.

[source: Nokia]