Nokia has sued Apple for patent infringement, claiming that the wildly popular iPhone uses several wireless technologies that Nokia developed.
There are 10 patents at issue in the lawsuit, covering 2G and3G wireless connections in a variety of radio standards. There's also a patent related to Wi-Fi integration in mobile phones. Nokia says it spent over $60 billion developing the technology, Ars Technica reports.
Behind the scenes, there appears to be a licensing dispute going on. Piper Jaffray analyst Gene Munster said in a note to investors that Nokia is looking for $6 to $12 from Apple for every iPhone sold. It's unlikely that Nokia will seek an injunction against iPhone sales, Munster said, but the lawsuit is intended to put pressure on Apple in the licensing negotiations.
That theory matches up with comments by Ilkka Rahnasto, Nokia's Vice President of legal and intellectual property. "By refusing to agree [upon] appropriate terms for Nokia's intellectual property, Apple is attempting to get a free ride on the back of Nokia's innovation," Rahnasto said in a statement.
If Apple was indeed negotiating on royalty payments, it would seem that Nokia's patent claims have merit. The question, then, is whether other cell phone manufacturers are using and licensing the patents, and whether Apple is being asked to pay a rate that's on par. TechDirt's Mike Masnick alleges that Nokia is just bitter over Apple's ascent in the smartphone game, but that's hard to say without knowing whether Apple is being unfairly singled out.
In any case, if Apple does end up paying royalties, I don't expect the company to pass that cost onto consumers, as the iPhone tends to stick to nice, rounded price points. But maybe Nokia could use that extra money to develop a decent smartphone itself.
