Nokia Claims iPhone Uses Its Technology, Wants Big Payback

Nokia Claims iPhone Uses Its Technology, Wants Big Payback

Ugh, this could get nasty. As Nokia's smartphone share is slipping and Apple'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.
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The iPhone's been out for two years, and *now* Nokia wants to negotiate patent licensing with Apple?  (Edit:  It looks like they've been talking for a while, and this is just Nokia upping the ante)

I've got to imagine Apple has quite a few patents themselves, and will now come back at Nokia to announce violations. In the end, they'll negotiate some cross-licensing deal.

This is why our patent system is great when you're the big, entrenched company, and horrible if you're trying to enter the market as the little guy.

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3vi1, I think you remember this:

http://www.reuters.com/article/pressRelease/idUS163466+09-Oct-2009+BW20091009

New way to make money for companies. I think it's time we reviewed the way patents work. As it stands now, all these lawsuits are hindering progress, and only making lawyers rich.

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Totally agree Gibbersome. Software patents should be thrown out completely, and hardware patents need some kind of peer-review test for obviousness.

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Some of the development going on these days is new and groundbreaking. It costs money to conceptualize, nurture, and bring these ideas into reality. The patent system provides protection for this investment in time and money. It is a good system that is unfairly enforced.

Patent holders lurking in the weeds for years while others infringe is what I see as a problem. There should be a '1-Year Cap' on recovery from patent infringement. If you wait for several years just to increase your eventual payout before you call the other company on their actions, you should be laughed out of court. An infringed patent should be enforced immediately, if not sooner.

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