Nokia has filed a complaint against Apple with the Federal District Court in Delaware, alleging that Apples iPhone infringes Nokia patents for GSM, UMTS and wireless LAN (WLAN) standards.
Nokias argument is that as a leading innovator in wireless communications, it has created one of the strongest and broadest patent portfolios in the industry, investing more than 40 billion in R&D during the last two decades. According to Nokia, much of this intellectual property, including the patents in suit, has been declared essential to industry standards. Nokia notes that it has already successfully entered into licence agreements including these patents with approximately 40 companies, including virtually all the leading mobile device vendors, allowing the industry to benefit from Nokias innovation.
The 10 patents in suit relate to technologies fundamental to making devices which are compatible with one or more of the GSM, UMTS (3G WCDMA) and wireless LAN standards. The patents cover wireless data, speech coding, security and encryption and according to Nokia, are infringed by all Apple iPhone models shipped since the iPhone was introduced in 2007.
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, says Ilkka Rahnasto, Vice President, Legal & Intellectual Property at Nokia. Apple is also expected to follow this principle. By refusing to agree appropriate terms for Nokias intellectual property, Apple is attempting to get a free ride on the back of Nokias innovation.