Apple sued by Nokia over patent infringement in iPhone

Nokia, the world’s largest mobile phone manufacturer based in Finland, has sued Apple, the US based conglomerate, over the violation of patent technologies used in the Apple iPhone, its prestigious cellphone. Nokia alleged that Apple uses its ten patented technologies without its permission. According to Nokia, the technologies that Apple has been found to have violated are wireless data, speech coding, security and encryption, GSM, 3G (UMTS or W-CDMA) and an unnamed wireless local area network (LAN) technology (most likely WiFi). Nokia alleged that these technologies have been used in iPhones without its consent.

Apple has already sold more than 30 million iPhone handsets. Thanks to the 7 per cent growth in iPhone sales, Apple had been able to record a profit of $1.67 bn (£1bn) for the three-month period ending September 2009.

Though Nokia did not mention a penalty in the lawsuit, an analyst estimated that Nokia would be seeking a compensation of 1-2% on every iPhone sold.

If the lawsuit is successful, then Nokia would get $6 in minimum to $ 12 in maximum per iPhone. This could result in a hefty amount in the region of $400m, considering 30million iPhones have been sold till date.

Reports say that Nokia wants compensation for Apple’s use of the patents in question.

It is also seeking a declaration that Nokia is entitled to an injunction until Apple pays compensation, along with interest, for pastuse of its patented technologies. Nokia did not specify an amount for the compensation it was seeking.

Citing the pending litigation status, an Apple spokesperson declined to comment.

According to the lawsuit, Nokia accused Apple of “trying to get a free ride on the back of Nokia’s innovation.” Apple’s share price took a dip after the news of the lawsuit.

What is most surprising about the whole issue, is that Nokia has decided to sue Apple after such a long time after the launch of the iPhone, if it had realized that Apple had indeed used its patented technologies.

Many expect the case to be settled out of court.