Nokia sues Apple over iPhone patent infringement

Dave Bailey, Computing, Thursday 22 October 2009 at 17:42:00

Court battle looms over GSM, UMTS and WLAN patents

A court battle between Nokia and Apple is on the cards, after the Finnish
mobile phone firm filed a complaint with a federal district court in the US,
alleging infringement of patents for its 2G, 3G and wireless technology by the
hugely successful iPhone.

In a statement Nokia said it had already successfully entered into licence
agreements including these patents with approximately 40 other companies,
including virtually all the leading mobile device vendors, allowing the industry
to benefit from Nokia's innovation.

The suit will focus on 10 patents relating to technology fundamental to
mobile devices compatible with the global system for mobile communications
(GSM), universal mobile telecommunications system (UMTS) and wireless LAN
standards.

Nokia said the patents covered "wireless data, speech coding, security and
encryption and are infringed by all Apple iPhone models shipped since the iPhone
was introduced in 2007."

The potential litigation is given added spice by the fact that Apple is
moving iPhones in ever-increasing numbers, helping to record profits of �1bn
earlier this week - up by nearly a half (47 per cent) over last year.

Apple's revenue rose to nearly �6bn for itas latest financial quarter.
Desktop and laptop computers shipped went up 17 per cent, while iPhones sales
increased by seven per cent, although iPod shipments dropped eight per cent. In
contrast Nokia recently announced a third quarter loss and quarterly sales down
30 per cent year-on-year.

Nokia's competing smartphone products, the N95, N96 and N97 mobile devices,
have by contrast been less successful. Nokia vice president for legal and
intellectual property Ilkka Rahnasto said 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 appro
priate terms for Nokia's intellectual property, Apple is attempting to get a
free ride on the back of Nokia's innovation," said Rahnasto.

Full story at http://www.computing.co.uk/computing/news/2251831/nokia-sues-apple