On Thu october 22,2009,Nokia,the world’s biggest mobile phone maker,sued Apple in a Delaware court,charging that the iPhone infringes on 10 wireless patents. “The patents cover wireless data, speech coding, security and encryption and are infringed by all Apple iPhone models shipped since the iPhone was introduced in 2007.”said by the Nokia company.
“The ten patents in suit relate to technologies fundamental to making devices which are compatible with one or more of the GSM, UMTS (3G WCDMA) and wireless LAN standards,” Nokia said. Nokia is said to spent $60 billion in research and development over the past two decades and had successfully entered into licence agreements,including these patents. While Apple is enjoying a free ride.
However Apple has yet not responded to the litigation.
“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,” Nokia Legal and IP vice president Ilkka Rahnasto says. “Apple is also expected to follow this principle.”
The case comes after Nokia’s report of his quarterly loss in years. Nokia has lost $1.36 billion in its summer quarter as it sold both fewer phones and cheaper phones. while Apple reported very favorable earnings and revenue.Apple this week surprised Wall Street by announcing a very favorable earnings and revenue due to strong iPhone and Mac computer sales. Nokia leads the world with a 38% phone market share ,while Apple is gaining share at a rapid rate.
To some extend,many people think that Nokia is retaliating against Apple because Apple has achieved a big success in the phone marketplace.”I really think this is more a function of Nokia trying to compete with Apple more than anything even if it’s through the courts,” said Shaw Wu, an analyst with Kaufman Brothers.”It’s a non-event for Apple. It’s immaterial even if they pay a lump sum,” he said. While, Geoff Blaber, director of devices and platforms at industry experts CCS Insights, said Nokia’s action is not altogether surprising. “The company has an enormous patent portfolio and their investment in innovation is as important to Nokia as its devices and services businesses. It is a large revenue stream for Nokia,” he said.
The case is likely to come to court by the end of 2011. And Apple can continue to develop and ship the iPhone, which launched in 2007 and has achieved great success.While there is no doubt that the Nokia will continue the litigation.
