October 26, 2009

Apple sued by Nokia over iPhone patent infringement

Mobile communications giant Nokia is taking court action against iPhone manufacturer Apple, claiming the smartphone infringes ten of its patents.

The lawsuit filed by Nokia – the world's biggest maker of mobile phones – could cost Apple tens of millions of dollars, as it stands accused of violating patents with components in the iPhone that handle encryption, security, wireless networking and speech processing.

According to Nokia, the Californian technology firm has sought a "free ride" on the back of its research innovation since the original iPhone's release in 2007. Nokia currently licenses its patents to around 40 companies, including most of the world's leading mobile device vendors.

"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," notes Ilkka Rahnasto, Nokia's vice-president of legal and intellectual property.

The case, which is not expected to reach court until the end of 2011, comes on the heels of Apple's announcement of a 46 per cent rise in profits, which it attributed to strong iPhone and Mac sales. Meanwhile, Nokia revealed it had made its first quarterly loss for over ten years.

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