SCENARIOS-Ways ahead in Nokia vs Apple legal battle

Fri Nov 6, 2009 8:23am EST
 
[-] Text [+]

* Nokia charged Apple on Oct. 22 in Delaware, U.S.

* Apple's answer, counter-claim expected

* Apple could go to U.S. International Trade Commission

* Legal battle could spill over to Europe

By Tarmo Virki, European technology correspondent

HELSINKI, Nov 6 (Reuters) - Finding a winner in the battle between Nokia (NOK1V.HE), the world's largest cellphone maker, and iPhone maker Apple (AAPL.O) could take years unless they agree on a licensing deal outside the courtroom.

Nokia dominates the global handset industry but has lost ground in the high-end of the market to new players like Apple which entered the market with its iPhone in mid-2007.

On Oct 22, Nokia accused U.S.-based Apple of hitching a "free-ride" on the Finnish company's technology investments.

Following are the main scenarios of the legal battle starting to unfold: CASE IN DELAWARE

Nokia filed its suit in the District Court of Delaware, United States, saying Apple had infringed 10 patents in technologies like wireless data transfer, a key factor in the success of iPhone. [ID:nLM664007]

The patents also cover speech coding, security and encryption, and are infringed by all iPhone models shipped since the iPhone was introduced in 2007, Nokia said.

The case is expected to last 2-3 years, and analyst estimates for compensation Nokia is seeking range from $200 million to $1 billion. [ID:nLN464459]

Apple is expected by analysts and lawyers to countersue, in which case the two suits could be merged.

"I would not be surprised to see a counter-claim from Apple citing patents it owns that it believes Nokia is infringing," said Ben Wood, research director at CCS Insight. "This type of tit-for-tat approach has occured in previous patent battles as each player tries to improve its negotiating position."

  Continued...

 

Featured Broker sponsored link