Nokia: Apple wants a free ride

By Erica Ogg and Joseph Hanlon on 23 October 2009

Nokia is suing Apple for 10 counts of patent infringement, pointing to wireless technology patents owned by the Finnish manufacturer.

(Credit: Apple/CBSi)

According to a statement from Nokia, all models of Apple's iPhone includes technology for which Nokia owns the patents, including GSM, UMTS and WLAN technologies for speech coding, security and encryption.

"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," said Ilkka Rahnasto, Nokia vice president for legal and intellectual property. "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."

Nokia estimates that it has spent over €40 billion in research and development and currently hold patents for over 10,000 intellectual properties. Nokia has agreements with a large number of the other phone manufacturers regarding the use of these technologies, and says that it has unsuccessfully sought such an agreement with Apple and that filing this lawsuit was a last resort.

It's unclear what compensation Nokia is seeking, though Apple analyst Gene Munster told CNET.com that he believes Nokia would hope for 1 or 2 per cent of all iPhone sales to date, which could add up to US$408 million based on the 34 million iPhones already sold worldwide. It is also known that Nokia has called for a halt of iPhone sales, though the general consensus is that Nokia would not intend for the iPhone to be pulled from stores altogether, just remuneration.

"There are companies that are patent trolls, that don't participate in the creation of technology, or they secretly acquire them. Nokia's not one of these companies. They're pretty upfront about the patents they own," noted Jason Schultz, director of the Samuelson Law, Technology & Public Policy Clinic at the UC Berkeley School of Law. "They're probably not trying to put Apple out of business ... but force Apple to play the same game that every other phone company has to play."

For more details on the lawsuit filed and the possible outcomes for both Nokia and Apple, check out "Nokia sues Apple for patent infringement" on CNET.com.

Topics: 3gs, apple, infringement, iphone, law, legal, mobile phone, patent, nokia, intellectual property

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Comments (10)

  • StupidApple commented on 16/11/2009 15:34 Report abuse

    This case is very similar to the CSIRO WIFI patent case. When technology become popular it does NOT mean it's free.
    Iphone is a great phone but Apple can't just steal the technology to lower their cost.

  • sadia commented on 07/11/2009 16:36 Report abuse

    http://nokiaphones.ws/
    Nokia phone not only offers a communication media intended for family, associates plus equals, but moreover a stand for information as well as amusement for the customer.

  • sow commented on 25/10/2009 17:35 Report abuse

    GO GET EM NOKIA! bout time someone showed the arrogant, pig headed execs at Apple that they don't own the world!!!! WoOoOOO!!

  • DAVE commented on 24/10/2009 19:46 Report abuse

    Nokia as inventors and Innovators of mobile technolgy have every right to be compensated for their patents. Just because a technology becomes common does not mean it is free. Apple should pay the same as every other mobile manufacturer for the license to use Nokia Tech. Companies like Motorola and Nokia who where there at the beginning and led innovations and inventions in mobile technology, paved the way for Apple to get into the market without building or developing infrastructure. So if Apple has to pay up so what.

  • Leo commented on 23/10/2009 18:09 Report abuse

    I agree that the iphone is superior to current Nokia high-end models. That is exactly my point: The iphone is superior not because Nokia couldn't build a better phone, but because it used its limited resources to create technology instead, and invented what was needed for the market to flourish. In contrast, Apple used its energy to create cute ways to lock customers into their own platform. It is the classic IP law context. If Apple gets away with this, everyone loses.

  • Leo commented on 23/10/2009 17:59 Report abuse

    Developing real innovation, the kind that supports open standards and enables the market to grow, takes a lot of work and time. Some companies choose to spend that time designing spiffy interfaces instead. Fine, great marketing companies should be able to play too, but they have to pay the people who did the real work what they are due.

  • M. commented on 23/10/2009 17:21 Report abuse

    Clearly a reaction to the increasing popularity, and decreasing market share of Nokia.
    Nokia lacks innovation. Apple has innovation by the truckloads.
    Every mobile manufacturer uses these same technologies that nokia suposedly holds patents for. Nokia are only going after Apple because they have managed to create a far superior phone than Nokia ever could.

  • Leo commented on 23/10/2009 16:55 Report abuse

    Developing real innovation, the kind that supports open standards and enables the market to grow, takes a lot of work and time. Some companies choose to spend that time designing spiffy interfaces instead. Fine, great marketing companies should be able to play too, but they have to pay the people who did the real work what they are due.

  • Matt commented on 23/10/2009 16:05 Report abuse

    I don't think they are being desperate. It takes a long time for a legal case to be put together between two corporate giants. You can't use somebody else's ideas, especially in a commercial capacity where you are making profit from it, without paying dues to the people who laid the foundations upon which your product has been so successful. Nokia have every right to request remuneration from Apple because Apple didn't spend billions of dollars developing the technologies that went into their "Revolutionary" device. You want to profit in the industry? You play by industry rules! Apple had the same reaction when other phone companies started using multitouch gestures on their phones so it is a little bit of a 'pot and kettle' situation.

  • Rob commented on 23/10/2009 15:08 Report abuse

    Just another example of a once great company that instead of focusing on what they do best and make great phones rested on their past great work and fell behind in the market. Come on Nokia release a phone that blows Apple out of the market, by doing this when Apple have been making phones for almost three years you look desperate,the consumer will loose by going to court...

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