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Apple Seeks To Ban Nokia Imports To US
Hugh Pickens writes "Cnet reports that the ongoing patent battle between Apple and Nokia has escalated, with Apple moving to block imports of Nokia cell phones to the US by filing a complaint with the International Trade Commission, an independent federal agency that examines issues including unfair trade practices involving patent, trademark, and copyright infringement. In December, Nokia filed its own complaint with the USITC alleging that Apple infringes seven Nokia patents 'in virtually all of its mobile phones, portable music players, and computers' and sought to ban imports of Apple's iPhone, iPod, and MacBook products. Responding to Apple's latest move, Nokia spokesman Mark Durrant told Bloomberg that 'Nokia will study the complaint when it is received and continue to defend itself vigorously. However this does not alter the fact that Apple has failed to agree appropriate terms for using Nokia technology and has been seeking a free ride on Nokia's innovation since it shipped the first iPhone in 2007.' An ITC investigation is a lengthy process, but it's possible that Apple and Nokia might reach some sort of settlement as suits continue to escalate between the two companies."
More than likely the percentage talks broke down and they are taking it to court. Nokia just went thru this with another big cell player Qualcomm (who nokia accused of charging more than the going rate). It has nothing to do with one or the other using the other inventions. It is just about money. They settled with qualcomm for a big chunk of money going to qualcomm. Which means 'we could go to court and drag it out for years but would loose in the end'.
Apple is playing a shaky game. As Nokia is one of the 800 pound gorillas in that market. It sounds like Apple is trying to get a 'favored' status rate. These guys will not do that as it ends up costing them with other people they charge. They have things in the contracts like 'if someone else gets a lower rate you get the same rate'. Nokia will fight tooth and nail not to go below a certain rate. This magic number is never said outside of boardrooms but everyone knows who is paying what anyway...
Well, that's what Apple claim. There are two problems with this.
The first one is, how does Apple know what other companies are required to pay? This article claims the agreements are secret and I see no reason to disbelieve that, it'd be standard for this sort of thing.
The second problem is that Apple have sadly established a track record in the last few years of being flexible with the truth, whereas Nokia have not. For example, covering up issues with Jobs' health and playing cute with the FCC over Google iPhone apps. In constrast the only time I read about Nokia in the news is when they've done something cool, like launching a new product.
Simply put, some companies have more credibility than others, and Apple is on the losing side in this one.