Nokia launched a new attack. But this time it is not with its new device or new mobile, but this particular attack is solely on Apple. Nokia declared that Iphone infringes 10 of its patents covering both cellphone calls and wireless Internet access. Nokia claimed that forty other cell phone manufacturers have licensed these patents, but Apple hasn’t. If this issue goes in front of a judge it could cost Apple millions of dollars.
Nokia developed technology and Apple simply borrowed it. But this Borrowing and sharing is not acceptable by Nokia and thus many newspaper agencies have termed it as “a free ride on the back of Nokia’s innovation”. Well is there anything wrong with that. Well yes, US copyright infringement Laws say, ‘yes there is’. The two companies have been busy negotiating, where it is believed that Apple will pay license fee to Nokia. The talks failed completely at the Federal District Court in Delaware.
Iphone has rapidly eaten up Nokia’s share of lucrative smartphone market, and will continue developing it until the case comes to court by 2011. If Nokia wins its case then Apple will have to pay them back keeping in mind the number of iPhone which have been sold around the world since 2007. This could cause Apple a huge loss.
Nokia spokesperson said, “We are not seeking to disrupt the business of any operator or the company, we are looking to get appropriate compensation for our intellectual property,” he said. “For Nokia, legal action is always a last resort.The patents cover wireless data, speech coding, security and encryption and are infringed by all Apple iPhone models shipped since the iPhone was introduced in 2007,” Nokia said. They also added that Nokia has spent almost €40-billion in research and development over the past two decades and has been successful in acquiring deals with 40 other companies.
“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,” said Ilkka Rahnasto, vice-president, Legal & Intellectual Property, at Nokia. “Apple is also expected to follow this principle. By refusing to agree appropriate terms for Nokia’s intellectual property, Apple is attempting to get a free ride on the back of Nokia’s innovation.”
But on the other hand, lawyers have said that Nokia is playing a very dangerous game,“This is a poker game in which there is a risk that Nokia’s patents could be ruled invalid. It’s a high-risk strategy for them.”
Apples is determined to create its own path and mark its own name in the new developing technology era. Thus it is believed that it would be very unlikely of Apple to collaborate on technology standards. Cross-licensing for Apple is not an option. It has kept silent so far on this issue, but at the same time it is believed that it must be creating an effective army to fight back without offering any form collaboration.
It is seen that with the development of new technologies companies often sue each other over the usage of their innovations. The regular outcome is that either the company agrees to pay licensing fee or both the parties agree by using each other’s patents. Lets see where the decision takes the two Giants. Whether they decide to collaborate, raise charges or continue the fight till one ends up in the dungeon.
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