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Nokia Sues Apple: iPhone Maker Accused Of Infringing Mobile Patents

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You might call it a case of: “if you can’t beat ‘em, sue ‘em”. Finnish mobile giant Nokia (NYSE: NOK) filed a lawsuit against Apple (NSDQ: AAPL) on Thursday on grounds that the iPhone maker has used Nokia’s mobile technology without permission. The case is filed in the Federal District Court in Delaware and alleges that Apple has used 10 Nokia-patented technology standards in the iPhone since its 2007 launch, relating to wireless data, speech coding, security and encryption.

SEE ALSO: Earnings: Apple Blows Away Expectations; Sells A Record Number of Macs, iPhones

In its release, Nokia complains that it’s spent €40 million billion ($60 billion) on R&D in the last 20 years and that its licensed its tech standards to manufacturers in 40 countries worldwide. Nokia’s VP for legal & IP Ilkka Rahnasto is taking no prisoners: “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,” he says. We’ve contacted both Nokia and Apple for further comment and will update when we can. Update: Apple simply told us that is “doesn’t comment on pending litigation”.

One thing that’s very much not clear is why Nokia is suing now, two years after the iPhone came out. There’s no suggestion from either side that this move is a business tactic from Nokia in the face of Apple’s success, but there’s no hiding the differing fortunes of both firms.

iPhones sales are still growing at astonishing rates in the US and Europe, Nokia’s heartland, and 7.4 million of them were sold in Q309 alone—making it more than 30 million to date—which helped Apple to a $1.67 billion quarterly profit. Nokia meanwhile, made a $1.36 billion loss for its Q3 and has all but no chance of increasing its market share in 2009 as it had hoped at the start of the year.

Oct 22, 2009 11:32 AM ET

Posted In: Gadgets, Legal, Patents, Mobile, Technologies / Formats, 3G, Companies, Apple, iPhone, Nokia

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