Nokia sues Apple for patent infringement
Top analyst says Apple could end up paying an estimated $1 billion to Nokia
Nokia has filed a complaint in a Delaware court against Apple because it claims that the iPhone infringes on their patents for GSM, UMTS and wireless LAN (WLAN) standards.
"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, VP, Legal & Intellectual Property at Nokia - the world's largest mobile phone manufacturer.
"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," Rahnasto added in a company statement. Nokia has invested EUR 40 billion ($75 billion) in research and development over the last two decades.
Then ten patents involved cover wireless data, speech coding, security and encryption and are infringed by all Apple iPhone models shipped since the popular smartphone was introduced in 2007.
In a Reuters report, Neil Mawston at Strategy Analytics said Apple might be asked to shell out anywhere between $200 million and $1 billion for the patents. The company has remained tight-lipped about the situation and not issued a public statement addressing Nokia's claims as yet.