Nokia and Apple are going to square off in court
Nokia today issued a press release
stating it will take Apple to court for patent infringements related
to its GSM, UMTS, and Wi-Fi standards.
In total, Apple is
allegedly infringing on 10 patents covered by the Finnish company --
the lawsuit was filed in the Federal District Court of
Delaware.
"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 VP Ilkka Rahnasto
said in a statement. "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."
Nokia reportedly invested
near $60 billion into research and development, as the company owns a
large patent portfolio. The company, the largest mobile phone
maker, signed previous licensing agreements with 40 various companies
-- allowing them to use the technology it accuses Apple of infringing
-- but Apple is trying to avoid paying.
For example, Nokia has
a couple thousands UMTS-related patents alone, with even more in
existence.
The Apple iPhone, with 7.4 million iPhones sold in
Apple's most recent, most profitable quarter ever continues to chip
away Nokia's smartphone market share. Nokia dropped from 41%
smartphone market share down to 35% in a single quarter.
Nokia
didn't state exact examples of infringement, so it's unsure how
legitimate these accusations are.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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