Nokia lodges complaint alleging Apple in broad patent violation
Nokia said Tuesday that it has filed a complaint with the United States International Trade Commission (ITC) alleging that Apple has been infringing on its patents in virtually all of its mobile phones, portable music players, and computers.
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In total, Nokia accuses Apple of treading on seven distinct patents to create key features in its products in the area of user interface, as well as camera, antenna and power management technologies. These patented technologies are said to allow Nokia to facilitate better user experiences, lower manufacturing costs, create devices of smaller size and deliver longer battery life.*
"Nokia has been the leading developer of many key technologies in small electronic devices" said Paul Melin, General Manager, Patent Licensing at Nokia. "This action is about protecting the results of such pioneering development."
Tuesday's complain signals an escalation of tensions between two of the world's mobile phone powerhouses. In October, Nokia sued Apple in a Delaware U.S. district court on grounds that the iPhone maker was illegally leveraging technology from 10 of its GSM and wireless LAN related patents for which it has invested over more than 40 billion Euros.
"While our litigation in Delaware is about Apple's attempt to free-ride on the back of Nokia investment in wireless standards, the ITC case filed today is about Apple's practice of building its business on Nokia's proprietary innovation," Melin said.
The world's largest cellphone maker claims it has successfully entered into license agreements with about 40 companies for those initial 10 patents. Industry experts have thus speculated that Nokia is likely seeking compensation from Apple in the form of royalty payments in the range of $6 to $12 per iPhone rather than an injunction that would halt the sale of the touch-screen handset.
Earlier this month Apple countersued Nokia, charging the Finland-based company with "stealing" technology from 13 of its own patents. The suit also alleged that Nokia was attempting to obtain more money from Apple than other companies, in addition to the rights to the iPhone maker's intellectual property -- all after the Finnish company had committed itself to nondiscriminatory licensing.
"In dealing with Apple, Nokia has sought to gain an unjust competitive advantage over Apple by charging unwarranted fees to use patents that allegedly cover industry compatibility standards and by seeking to obtain access to Apple's intellectual property," Apple wrote in its complaint. "Nokia needs access to Apple's intellectual property because Nokia has copied and is now using that patented technology."
Apple added that Nokia "remained focused on traditional mobile wireless handsets with conventional user interfaces," while the iPhone revolutionized the way consumers use smartphones.
"As a result, Nokia has rapidly lost share in the market for high-end mobile phones. Nokia has admitted that, as a result of the iPhone launch, 'the market has changed suddenly and [Nokia was] not fast enough changing with it.' In response, Nokia chose to copy the iPhone, especially its enormously popular and patented design and user interface."
As the iPhone has grown in popularity, Nokia has retained its status as market leader, but has lost significant share of the market it once dominated. As recently as August, Nokia's Symbian mobile platform was said to have a 50 percent market share, well down from the 72 percent the platform had in 2006. In the second quarter of 2009, the iPhone represented 14 percent of global smartphone sales.
Though Nokia still controls the market, competitors Apple and Research in Motion are said to have profit margins that far exceed their market share. More specifically, industry analysts declared their belief last month that Apple's iPhone operating profit is the highest in the mobile phone industry, helping it overtake market leader Nokia to claim the handset profit crown during its last financial quarter.
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In total, Nokia accuses Apple of treading on seven distinct patents to create key features in its products in the area of user interface, as well as camera, antenna and power management technologies. These patented technologies are said to allow Nokia to facilitate better user experiences, lower manufacturing costs, create devices of smaller size and deliver longer battery life.*
"Nokia has been the leading developer of many key technologies in small electronic devices" said Paul Melin, General Manager, Patent Licensing at Nokia. "This action is about protecting the results of such pioneering development."
Tuesday's complain signals an escalation of tensions between two of the world's mobile phone powerhouses. In October, Nokia sued Apple in a Delaware U.S. district court on grounds that the iPhone maker was illegally leveraging technology from 10 of its GSM and wireless LAN related patents for which it has invested over more than 40 billion Euros.
"While our litigation in Delaware is about Apple's attempt to free-ride on the back of Nokia investment in wireless standards, the ITC case filed today is about Apple's practice of building its business on Nokia's proprietary innovation," Melin said.
The world's largest cellphone maker claims it has successfully entered into license agreements with about 40 companies for those initial 10 patents. Industry experts have thus speculated that Nokia is likely seeking compensation from Apple in the form of royalty payments in the range of $6 to $12 per iPhone rather than an injunction that would halt the sale of the touch-screen handset.
Earlier this month Apple countersued Nokia, charging the Finland-based company with "stealing" technology from 13 of its own patents. The suit also alleged that Nokia was attempting to obtain more money from Apple than other companies, in addition to the rights to the iPhone maker's intellectual property -- all after the Finnish company had committed itself to nondiscriminatory licensing.
"In dealing with Apple, Nokia has sought to gain an unjust competitive advantage over Apple by charging unwarranted fees to use patents that allegedly cover industry compatibility standards and by seeking to obtain access to Apple's intellectual property," Apple wrote in its complaint. "Nokia needs access to Apple's intellectual property because Nokia has copied and is now using that patented technology."
Apple added that Nokia "remained focused on traditional mobile wireless handsets with conventional user interfaces," while the iPhone revolutionized the way consumers use smartphones.
"As a result, Nokia has rapidly lost share in the market for high-end mobile phones. Nokia has admitted that, as a result of the iPhone launch, 'the market has changed suddenly and [Nokia was] not fast enough changing with it.' In response, Nokia chose to copy the iPhone, especially its enormously popular and patented design and user interface."
As the iPhone has grown in popularity, Nokia has retained its status as market leader, but has lost significant share of the market it once dominated. As recently as August, Nokia's Symbian mobile platform was said to have a 50 percent market share, well down from the 72 percent the platform had in 2006. In the second quarter of 2009, the iPhone represented 14 percent of global smartphone sales.
Though Nokia still controls the market, competitors Apple and Research in Motion are said to have profit margins that far exceed their market share. More specifically, industry analysts declared their belief last month that Apple's iPhone operating profit is the highest in the mobile phone industry, helping it overtake market leader Nokia to claim the handset profit crown during its last financial quarter.
Comments
I guess Nokia has got nothing in the pipeline to compete with the iPhone so if you can't beat em, sue em.
Agreed. Reminds me of the vista advertising commercial. This money to development of new products, this huge stack of money to sue people.
For the more technical aspects.. why cannot they say for example.... their patent introduces the concept of using" foo circuit in this pattern under this material doing this and that where as apple uses the same circuit with the same material doing this and that and this".
Sorry... but I am a bit upset by the use of the courts for negotiation and general business practices. Along with thinking as others do... that the patent system is screwed beyond repair.
so why not just say it. and whip out their version for the world to see all the nasty cheating that Apple has done.
I find it very very very hard to believe that Apple's legal department didn't do their due diligence on all possible patents 20 times over before the iphone launch in 2007 and since.
Or that Nokia's lawyers took 2 and a half years (and how much in profit for Apple) to realize and do something about this blatant thievery of their hard work.
My my, how times have changed in 2009.
The only thing that will stop Nokia's downward slide is innovation + rethinking what it means for users to interact with mobile devices + a great interface/OS + a robust app store + reducing some of that hardware fragmentation.
In short, Nokia has to start over. This isn't 7 years ago.
Nokia is the new Microsoft, which was the new Third Reich.
choose your comparisons more wisely.
choose your comparisons more wisely.
Well, the "Microsoft Empire" would be the Fourth Reich by that logic, anyway, which doesn't necessarily bear any resemblance to Nazi Germany, aside from the term itself being coined by a Nazi (Reich means "empire.") The First Reich being the Holy Roman Empire, and the Second Reich being the German Empire of the late 19th century, created by Bismarck.
Either way, me too thinks this is all lame.
These patented technologies are said to allow Nokia to facilitate better user experiences
Better than... what, exactly?
In short, Nokia has to start over. This isn't 7 years ago.
I think you?re right. Nokia may be down for the count but they are far from being on their last leg, like Palm seems to be with their desperate moves and poor decisions despite having a potential winner on their hands. Nokia has plenty of money and therefore plenty of time to regroup, restructure and R&D a true competitor.
Seems that both companies are raising the rhetoric to insane levels to beat their chests like gorillas then settle out of court with some kind of cross licensing. I doubt either company is sin-free have both stepped on each other.
It sure comes across that way.
Seems that both companies are raising the rhetoric to insane levels to beat their chests like gorillas then settle out of court with some kind of cross licensing. I doubt either company is sin-free have both stepped on each other.
Either way, me too thinks this is all lame.
This is the normal way for patent infringement allegations. Usually companies will try and cross-license on the quiet before a court hearing. Only when that fails do they go in to the expensive lawyer paying mode... And then the usual response is the counter-sue and so on.
Here though it does seem like Nokia is serious about seeing this out. I doubt Apple would want to cough up anything like those `speculated' royalties, so they will likely fight tooth and nail.
Look at how games are played in iphone, MUTI-touch supports up to 5 fingers, nokia?? NONE.... NOKIA should REALLY think how suck their flagship phone N97 is ... this is TOTALLY rubbish...
This is the normal way for patent infringement allegations. Usually companies will try and cross-license on the quiet before a court hearing. Only when that fails do they go in to the expensive lawyer paying mode... And then the usual response is the counter-sue and so on.
Here though it does seem like Nokia is serious about seeing this out. I doubt Apple would want to cough up anything like those `speculated' royalties, so they will likely fight tooth and nail.
After Apple countersued Nokia they just freaked out completely and pulled out all their guns in one go, basically saying: "We own 100% of the iPhone! Now pay us."
This puts Apple in a good spot, since this is a ridiculous claim.
Maybe what Nokia is really after is access to using the iPhone related patents so that they can try and do something similar.
I think you?re right. Nokia may be down for the count but they are far from being on their last leg, like Palm seems to be with their desperate moves and poor decisions despite having a potential winner on their hands. Nokia has plenty of money and therefore plenty of time to regroup, restructure and R&D a true competitor.
It sure comes across that way.
Yea, Rubenstein, minister of propaganda and the falsely attributed "father of the iPod", sure fell on his face gambling on Palm, but I suspect he had no choice.
He was used up at Apple, conning people with the PowerMac G5 and the PPC from IBM as the greatest computer ever. QWACK!
Boy are a lot of people angry about that. Me included. I lost a considerable investment with just one announcement of the Intel switch.
His revenge? Leeching off iTunes.
funny sh*t.
Ah the old typical "Nokia bad, Apple good" frothing at the mouth responses. The truth was summed up beautifully by both Solipsism and sflocal. Apple has very, very, very limited cellular experience. Only the most rabid Apple lover would think otherwise while Nokia pretty much invented cellular technology. The fact that Nokia is challenging Apple on a few specific patents should be proof enough that they have thought this out from a technology prospective as well as maybe a: "let's stick it to Apple" prospective. The only real winners are the lawyers.
If "virtually all Apple devices violate its patents", why hasn't Nokia used any of them?? Where's their amazing multi-touch app phone with the slickest UI around? Where's their iPhone killer? Never mind that, where's their Android Killer? Where is ANYTHING currently inspiring or truly impressive from Nokia that is currently in the hands of the everyday user?
Nokia is a joke. Like anyone cares how much experience they have when they've done virtually nothing for the past two years except churn out the same old devices and experience a historic slide in share and stock. Apple has shown them up in every department, overnight. Experience . . . . . right.
This nailed it:
"In contrast, Nokia made a different business decision and remained focused on traditional mobile wireless handsets with conventional user interfaces. As a result, Nokia has rapidly lost share in the market for high-end mobile phones. Nokia has admitted that as a result of the iPhone launch, 'the market changed suddenly and [Nokia was] not fast enough changing with it.' (citation)...In response, Nokia chose to copy the iPhone, especially its...patented design and user interface."
http://www.betanews.com/article/Appl...nts/1260559533