Nokia Claims Apple Does "Legal Alchemy" To Mask IP Theft

CWmike writes "Nokia asked a federal judge last week to toss out Apple's antitrust claims, saying the iPhone maker indulged in 'legal alchemy' when it tried to divert attention from its infringement of Nokia's intellectual property. The filing was the latest salvo in a battle that began in October 2009 when handset maker Nokia sued Apple, saying the iPhone infringed on 10 of its patents, and that Apple was trying 'to get a free ride on the back of Nokia's innovation.' Apple countered in December with a lawsuit of its own that not only claimed Nokia infringed 13 of its patents, but that Nokia also violated antitrust law by legally attacking Apple after it declined to pay what it called 'exorbitant royalties' and refused to give Nokia access to iPhone patents. 'These non-patent counterclaims are designed to divert attention away from free-riding off of Nokia's intellectual property, a practice Apple evidently believes should only be of paramount concern when it is the alleged victim,' Nokia charged in the motion. Apple is on a legal roll, having also recently sued the maker of Google's Nexus One, HTC, for patent infringement."

Comments

I hope Bilski invalidates them all

[linuxrocks123]

Hopefully the Bilski decision will come out and invalidate software patents. Then these companies can get back to competing on innovation.

Re:I hope Bilski invalidates them all

[Kitkoan]

In a car analogy, Nokia is selling engines for cars. Everyone who wants to build a car has to buy a Nokia engine, and they all pay $5,000 for it. Since Nokia is the only company that can sell engines, they agreed to sell anyone who makes cars an engine for $5,000 (RAND). Apple comes along, builds the iCar, and wants to buy the Nokia engine. Nokia sees that the iCar has a nifty dashboard widget, and wants that for their cars. So Nokia charges Apple not just $5,000, but $5,000 plus the dashboard widget.

In this case, no one has clean hands nor is completely innocent.

Yes, but it's not just royalty rates involved in this case. Its patents and royalty rates. With your car analogy: Nokia is selling engines for cars, everyone who wants to build a car has to buy a Nokia engine up $5000 and offer up say $10000 worth of patents. Along comes Apple, a new comer to the field and wants to make the iCar with it's nifty dashboard widget. They only want to pay the $5000 everyone else pays but when it comes to the patent end, they only have $5000 worth of patents they can use, leaving a $5000 difference between what they want to pay and what everyone else is paying. (iPhone is only 3 years old so it's possible on that level). Now you have everyone paying a total of $5000 cash + $10000 patents value to make a total value of $15000. Apple offers only $5000 cash (like everyone else) + $5000 in patents = $10000, $5000 less then anyone else. That leaves Apple getting the unfair deal in their favor. Looking only at the cash value, yes that is horribly unfair of Nokia to want that extra $5000 from Apple, but it's only higher cash because the patent options lacked compared to what they normally charge.

Isn't licence pricing usually kept quiet?

[Colin Smith]

But Nokia wanted more from Apple for these patents than they did from anyone else.

Really? So, exactly how much did Nokia want from Apple?

And exactly how much did the other licensees pay?

 

Re:RAND

[kylant]

Have you ever considered that both sides of the story might be true?

Apple has a rather unusual model to sell its phone: From what we've heard Apple demands not only a one-time sales price from the operators (as most other mobile manufacturers do) but also a part of the monthly fee paid by iphone-customers. If Nokia licenses its patents for a percentage of the sales price (a common practice) they could also have asked for a percentage of the monthly fee (and justly so, if you ask me, as Apple just spreads out the sales price over a longer period of time). Apple on the other side might object to being the only GSM-manufacturer that has to pay a monthly fee.

Re:RAND - *IF* you developed it...

[shutdown -p now]

You linked to the general definition of RAND. There's nothing in the definition that precludes some form of "limited RAND", where the terms are only applied to a members of a specific group, and not outside of it.

In any case, every time this Nokia vs Apple topic is raised on Slashdot, I see this very same exchange about RAND. However, neither the side that claims GSM is RAND-licensed to everyone, nor the side which claims some kind of "limited RAND", have offered any definite sources. I've tried to find it on GSM Association website on my own, but wasn't successful.

Until then, both yours and GP's claims are just speculation, and the actual licensing terms for GSM specs, and how they apply to this situation, are unclear.