Ugh, this could get nasty. As Nokia
's smartphone share is slipping and
's is growing rapidly, the former has taken the gloves off and
taken the latter to court. What for, you ask? Because Apple's iPhone is
utilizing some Nokia technology, and Apple isn't paying Nokia a dime to
use it. Or, that's the story according to Nokia anyway.
According to the lawsuit, which was recently filed in the United
States, Apple's iPhone
, iPhone 3G and iPhone 3GS all use certain Nokia
technologies (such as wireless data transfer), and Apple has yet to ask
for permission or pay a royalty. According to Nokia, Apple is trying to
hitch "a free ride" on its technology investment, while Ben Wood,
research director at CCS Insight, noted that it is "almost
inconceivable that someone can produce a mobile phone without using
Nokia patented technologies."
Neil Mawston at Strategy Analytics said Apple could have to pay Nokia
anything between $200 million and $1 billion for patents used in 34
million iPhones shipped so far, though if there is any truth to this we
can't imagine Apple actually letting this get to court. But you bet
they'll be using some of those sweet profits to pay off an arch-rival
if you hear the words "settled out of court" anytime soon.