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.