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Nokia Slaps Patent Infringement Lawsuit Against Apple

Nokia, the world’s largest cellphone maker, Thursday filed a lawsuit against Apple, alleging that Apple iPhones violate 10 different patents for the wireless transmission technology owned by Nokia.


In the lawsuit, Nokia has claimed that various patented technologies, like speech coding to security to wireless data transmission, have been used by every iPhone since they have existed.

In the lawsuit, Nokia has claimed that various patented technologies, like speech coding to security to wireless data transmission, have been used by every iPhone since they have existed.

The 10 patents defined in the lawsuit, filed in the U.S. state of Delaware, speak about the technologies fundamental to devices using UMTS, GSM and LAN (wireless local area network) standards, Nokia said.

In its complaint against Apple, Nokia said it is entitled to an injunction until Apple pays compensation, along with interest, even for its past infringements.

So why Nokia is suing Apple so late?
As said above, all those technologies are used in every single iPhone since the beginning. Why Nokia is waking up to the infringements so late? What’s all the commotion about?

Well, answer seems simple enough to a certain degree i.e. Nokia dominates the global handset market with a 38 percent share for a long time, but it has started losing some of its territory to new smartphone entrants like Apple, which entered the market with its iPhone somewhere around mid-2007.

This loss is very frustrating from Nokia’s view point since it is selling phones with computer like features before Apple but none of its devices has generated so much buzz in the market. Apple has taken over 14 percent of the global market since it launched iPhones.

How much compensation is Nokia seeking
"Apple's wireless communication devices take advantage of the decades of continued investments by Nokia to build today's communication protocols," Nokia said in the filing. "By refusing to compensate Nokia for its patented technologies, Apple is attempting to get a 'free-ride' on the billions of dollars that Nokia has invested."

The compensation amount is the one thing that none of the parties involved seemed interested in disclosing.

What are the analyst making of Nokia’s move
According to an analyst, Nokia’s lawsuit was a part of a trend among telecom equipment makers trying to make money out of litigations. These makers are continuously in search for making new revenue sources as the market for the wireless has become saturated and sales are stagnating.

It could also be negotiating tactic to gain access to Apple technologies via settlement by Nokia.

“Where there is a hit, there is usually a writ,” said Mr. Mawston of Strategy Analytics.

Everyone is busy making their own conclusion, but drama is still unfolding. So let’s wait and watch what’s next to come in this high voltage drama.

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