Nokia Files Lawsuit Against Apple; Alleges iPhone Infringing 10 Patents

March 2010

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Nokia launches lawsuit against Apple for infringing patents

The past two years have seen a sudden spurt in the growth of smartphones; something that has caught the global mobile phone leader Nokia off-guard. In trying to keep up with fresh competition from the likes of Apple and RIM, Nokia has seen its smartphone market share drop from 41% to 35% in just the previous quarter.

This new order has seen the Finnish market leader report a loss of $886 million while Apple posted a profit of $1.67 billion in the same quarter. Perhaps, in a desperate move to even things out, Nokia has sought a 'Robin Hood'-like intervention of the courts to reduce this revenue gap.

In a recent lawsuit filed against Apple at the Federal District Court in Delaware, Nokia alleges that Apple's iPhone has been infringing on close to ten patents owned by Nokia that relate to GSM, UMTS and Wireless LAN standards. Further, Nokia claims that these patents have been licensed to over 40 companies worldwide which includes all the leading mobile handset manufacturers while Apple has chosen to "free ride" on these innovations all along.

According to the statement released on the Nokia website, Ilkka Rahnasto, Vice President, Legal & Intellectual Property at Nokia writes

"The basic principle in the mobile industry is that those companies who contribute in technology development to establish standards create intellectual property, which others then need to compensate for. Apple is also expected to follow this principle. By refusing to agree appropriate terms for Nokia's intellectual property, Apple is attempting to get a free ride on the back of Nokia's innovation."

What do these infringements amount to? According to an article on BrainStorm Tech, it could constitute 1% to 2% of the cost of an iPhone or up to $12 per iPhone. That's a massive number considering the volume of iPhones shipped till date. While it is not clear what has been the discussion between the two companies so far on this issue, we do see it more as an issue of settling on a licensing fee commensurate to the technology rather than a case of Apple choosing to take Nokia for a ride.

Coming as it is after a contrasting display over the past quarter, do you see Nokia's lawsuit as a face saving gesture or do you see value in this lawsuit. Please tell us in the comments.

[via Nokia, BrainStorm Tech]