Apple, who is well known for their arrogance, could be up for $1.1 billion dollars if they lose their lawsuit with Nokia and that’s only for the iPhones that they have manufactured to date, using what is claimed to be Nokia patented GSM technology.
Last week Nokia took action in the USA claiming that Apple had infringed 10 patents. They claim that the iPhone maker is trying to get a “free ride” on Nokia’s GSM technology investment by simply” stealing” the technology.
This is not the first time that Apple has tried to get away with not paying for a name or technology. They did it with Cisco when they first launched the iPhone which ironically, is a name owned by Cisco not Apple.
When Apple launched the iPhone name name during the 2007 CES show, Cisco who were keynoting at the technology show at the time, instantly said they would sue Apple for breaching a Cisco patent.
This agreement that allows Apple to use the iPhone name was only reached after Cisco took legal action against Apple who chose to negotiate rather than face up to scrutiny in a Court of law.
Research shows that while Apple is a market leader in the Smartphone market, they have limited intellectual property assets compared with their European rivals who all have cross-licensing agreements
Neil Mawston at Strategy Analytics said Apple could have to pay Nokia anything between $US200 million and $US1 billion for patents used in 34 million iPhones shipped so far.
The analysts said Nokia has a case to claim such sums as it is one of the key patent holders in mobile technologies, alongside Qualcomm and Ericsson.
“It is almost inconceivable that someone can produce a mobile phone without using Nokia patented technologies,” said Ben Wood, research director at CCS Insight.
An Ericsson spokesman said on Friday the company has a licensing deal with Apple.
Nokia said in its court filing it had made several price offers to Apple ona per patent basis and ona portfolio basis, but the US firm has refused any deals.
The analysts said top vendors who have been in the industry for a long time usually pays a few per cent of their revenue as royalties, but new entrants could pay more than 10 per cent of sales price to IPR holders.
Nokia dominates the global handset market but it has lost some ground to new smartphone entrants like Apple, which entered the market with its iPhone in mid-2007.
Nokia’s previous major legal battle ended last year with a one-time payment of 1.7 billion Euros to US mobile chipmaker Qualcomm as part a patent agreement with Qualcomm.