On October 22, 2009, Nokia, Inc., globally the largest cell phone manufacturer by handset market share, sued Apple, Inc. in the Federal District Court in Delaware, claiming that Apple’s iPhone infringes 10 patents in respect of GSM, UMTS and wireless LAN (WLAN) innovations held by Nokia. The suit also alleges that the patents are fundamental to making devices compatible with those standards, and for implementing wireless data, speech coding, security and encryption.
It has been postulated that the suit is somewhat preemptory of Nokia’s own launch of mobile touch-screen technology, which may include Apple intellectual property. Ikka Rahnasto, Nokia Vice President, Legal & Intellectual Property, is quoted in Nokia’s press release for the principle that mobile phone innovation should be available to all manufacturers by way of license. "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 ... Apple is also expected to follow this principle. By refusing to agree [upon] appropriate terms for Nokia's intellectual property, Apple is attempting to get a free ride on the back of Nokia's innovation." The obvious implication (supported by analyst Gene Munster with Pier Jaffray) is that Apple has not concluded a license with Nokia for rights to the patents at suit; but it may also imply that Nokia has not been successful in getting cross licenses to Apple’s intellectual property. Nokia, by seeking royalties as a means to address its claims, may be trying to preempt potential injunction applications from Apple.
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For the Nokia Press Release, visit:
For the Apple Insider view, visit:
For a list of the patents at issue, visit: