Nokia and Apple File Competing Lawsuits Over Patents -- 3rd Update
December 21 2016 - 6:56PM
Dow Jones News
By Tripp Mickle and Matthias Verbergt
Apple Inc. and Nokia Corp. filed competing lawsuits over
intellectual property used in the iPhone and other Apple
products.
The suits, filed this week in the U.S. and Germany, mark the
second time in the past seven years that the companies have squared
off in a dispute over patents. In 2011, Apple settled a two-year
patent case with Nokia and agreed to pay licensing royalties for
use of some Nokia patents in iPhones.
In a suit Apple filed Tuesday in the U.S. District Court for the
Northern District of California, the Cupertino, Calif.-based
company argues that Nokia excluded some patents from that agreement
and transferred them to third-party companies "to be used for
extorting excessive royalties" from Apple. It asked the court to
award damages and rule that Nokia breached its contract.
On Wednesday, Nokia said it filed complaints in Germany and the
U.S., alleging that Apple products infringed on 32 Nokia patents
covering technologies such as display, antenna and video coding.
The suits were filed with the regional courts in Düsseldorf,
Mannheim and Munich in Germany and the U.S. District Court for the
Eastern District of Texas.
Ilkka Rahnasto, Nokia's head of patent business, said in a
statement the company negotiated several years with Apple to reach
an agreement on the use of the 32 patents before deciding it would
take action "to defend (its) rights."
An Apple spokesman said the company has always been willing to
pay a "fair price" for patents covering the technology in its
products. "Unfortunately, Nokia has refused to license their
patents on a fair basis and is now using the tactics of a patent
troll to attempt to extort money from Apple," he added.
In the previous patent dispute, Nokia was able to secure a
favorable settlement worth an estimated $720 million from Apple
Florian Mueller, an independent intellectual-property analyst,
said any impact from the new case on Apple's business would likely
be limited because it would be difficult for Nokia to get an
injunction against Apple's iPhones in Germany or the U.S.
Once the world's largest cellphone maker, Nokia abandoned
mobile-device manufacturing in 2014, when it sold its mobile-phone
business to Microsoft Corp. for EUR5.44 billion ($5.86 billion) to
focus on network equipment. But Nokia's patents still cover
technology used in many of today's smartphones and tablets.
As sales of networking equipment are in decline world-wide due
to lower spending by mobile service providers, Nokia is
increasingly dependent on its highly profitable patent business.
Last year, revenue from Nokia Technologies, the business unit that
holds the company's patent portfolio, amounted to EUR1.02 billion,
or 8% of its total sales.
"The stock market wants to see that Nokia can generate some
patent income because it doesn't have much else," Mr. Mueller
said.
A year ago, Apple and Nokia rival Ericsson AB ended a similar
patent dispute, saying they had reached a global license
agreement.
--Joshua Jamerson contributed to this article.
Write to Tripp Mickle at Tripp.Mickle@wsj.com and Matthias
Verbergt at Matthias.Verbergt@wsj.com
(END) Dow Jones Newswires
December 21, 2016 18:41 ET (23:41 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Nokia (NYSE:NOK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Nokia (NYSE:NOK)
Historical Stock Chart
From Apr 2023 to Apr 2024