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Nokia Claims iPhone Uses Its Technology, Wants Big Payback

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News Posted: Sat, Oct 24 2009 12:36 AM
Ugh, this could get nasty. As Nokia's smartphone share is slipping andApple's is growing rapidly, the former has taken the gloves off andtaken the latter to court. What for, you ask? Because Apple's iPhone isutilizing some Nokia technology, and Apple isn't paying Nokia a dime touse it. Or, that's the story according to Nokia anyway.

According to the lawsuit, which was recently filed in the UnitedStates, Apple's iPhone, iPhone 3G and iPhone 3GS all use certain Nokiatechnologies (such as wireless data transfer), and Apple has yet to askfor permission or pay a royalty. According to Nokia, Apple is trying tohitch "a free ride" on its technology investment, while Ben Wood,research director at CCS Insight, noted that it is "almostinconceivable that someone can produce a mobile phone without usingNokia patented technologies."



Neil Mawston at Strategy Analytics said Apple could have to pay Nokiaanything between $200 million and $1 billion for patents used in 34million iPhones shipped so far, though if there is any truth to this wecan't imagine Apple actually letting this get to court. But you betthey'll be using some of those sweet profits to pay off an arch-rivalif you hear the words "settled out of court" anytime soon.
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3vi1 replied on Sun, Oct 25 2009 12:19 PM

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.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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gibbersome replied on Sun, Oct 25 2009 5:03 PM

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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3vi1 replied on Sun, Oct 25 2009 8:24 PM

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

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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realneil replied on Mon, Oct 26 2009 9:29 AM

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.

Don't part with your illusions. When they are gone you may still exist, but you have ceased to live.

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