A legal fight over patents between Nokia and Apple fell decidedly in Nokia’s favour after 20 months of deliberations. As a result, Apple and other manufacturers of Android cell phones could be financially hurt thanks in part to the settlement agreement reached between the two companies.
The legal wrangling came down to Apple’s intellectual property versus Nokia’s patent history. Business and legal experts overwhelmingly agreed that Apple lost the struggle as the settlement largely benefits Nokia in the end. Apple is forced to hand over a lump sum payment to Nokia along with residual royalties that significantly enhanced Nokia’s profits for the last two quarters of 2011. Shortly after news of the settlement reached investors, Nokia shares had climbed by 3 per cent.
Apple’s fights in the courtroom were not limited to Nokia. The company also had to face a separate legal battle with Android manufacturers Motorola, Samsung, and HTC. As for Nokia, they are expected to continue asking various other companies for royalties on their patents. Based on the strength of their victory over Apple, it is believed that more companies will capitulate to Nokia while fewer will openly resist and engage in protracted litigation.
Florian Mueller of FOSS Patents indicated that Nokia’s next move could be to go after mobile manufacturers whose smartphone designs are closely linked with Google software. The case between Apple and Nokia serves as a precedent, Mueller noted, one that could apply additional pressure on companies that incorporate Android software to pay a similar royalty structure.
Nokia took the opportunity to express their pleasure at Apple’s inclusion as a licensee. CEO Stephen Elop stated that the settlement represented a show of strength for Nokia’s patent portfolio. He also noted that the company looks forward to furthering their licensing ventures within mobile communications.
Apple, on the other hand, chose to highlight their small victories in the settlement. A spokesperson for the company underscored Apple’s ability to retain all licensing pertaining to the unique innovations surrounding their popular iPhone. The spokesperson also indicated that the company was relieved to put the episode behind it and move forward.
The origins of the struggle between Nokia and Apple began in October of 2009 when Nokia filed claims accusing Apple of infringing on at least 10 of its patents in the construction of the iPhone. Such patents included wireless LAN, GSM, and UMTS. Apple countersued Nokia, and eventually the two companies ran the number of patents under dispute to 75 across seven legal jurisdictions, including the state of Delaware in the United States to Dusseldorf, Germany.