Nokia Files Patent Suit Against Apple
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Nokia filed a patent infringement lawsuit against Apple today, claming that the iPhone maker illegally encroached on 10 of its patents for wireless technology.
The suit, filed today in Federal District Court in Delaware, alleges that Apple (NASDAQ: AAPL) infringed Nokia (NYSE: NOK) patents for GSM, UMTS or 3G WCDMA, and wireless LAN standards.
"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," the Finnish mobile giant said in statement.
"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 appropriate terms for Nokia's intellectual property, Apple is attempting to get a free ride on the back of Nokia's innovation," Ilkka Rahnasto, vice president for legal and intellectual property at Nokia, said in a statement.
Nokia is seeking royalties for the patents it claims were infringed in the iPhone, iPhone 3g and 3GS.
Apple and Nokia did not immediately return calls seeking comment.
The news comes on the heels of Apple's blow-out third quarter earnings in which the company reported its biggest profits to date and as Nokia struggles to catch up in the competitive US smartphone market.
Going beyond handsets
Nokia, the global leader in handsets, recently made huge strides in expanding its core business beyond phones to include wireless devices, such as the Booklet 3G, and mobile services encompassing music, apps for its Symbian OS, geo-targeted ads, mapping and navigation and private social networking. But the company has seen declines in its US market share.