Nokia sues Apple over alleged iPhone patent infringement

Nokia prepares patent battle with Apple

A court battle between Nokia and Apple is on the cards, after the Finnish mobile phone firm filed a complaint with a federal district court in the US, alleging infringement of patents for its 2G, 3G and wireless technology by the hugely successful iPhone.

In a statement Nokia said it had already successfully entered into licence agreements including these patents with approximately 40 other companies, including virtually all the leading mobile device vendors, allowing the industry to benefit from Nokia's innovation.

The suit will focus on 10 patents relating to technology fundamental to mobile devices compatible with the global system for mobile communications (GSM), universal mobile telecommunications system (UMTS) and wireless LAN standards.

Nokia said the patents covered "wireless data, speech coding, security and encryption and are infringed by all Apple iPhone models shipped since the iPhone was introduced in 2007."

The potential litigation is given added spice by the fact that Apple is moving iPhones in ever-increasing numbers, helping the firm to record profits of £1bn earlier this week - up by nearly a half (47 per cent) over last year.

Apple's revenue rose to nearly £6bn for its latest financial quarter. Shipments of desktop and laptop computers rose by 17 per cent, while iPhones sales increased by seven per cent, although iPod shipments dropped eight per cent. In contrast, Nokia recently announced a third quarter loss and quarterly sales down 30 per cent year-on-year.

Nokia's competing smartphone products, the N95, N96 and N97 mobile devices, have failed to match the iPhone's success.

Nokia vice president for legal and intellectual property Ilkka Rahnasto said 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.

"Apple is also expected to follow this principle. 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," said Rahnasto.