Posted in Technology
ut analysts believe that the risks involved in entering into a legal minefield to help regain lost ground, especially in the smartphone market growing fast, it could pay dividends because of the large portfolio of patents, Nokia has built as founder of the telephone industry.
Nokia raised the heat Tuesday with a new patent challenge against the manufacturer of the iPhone, and the possibility of a tit-for tat response from Apple, as the two companies seeking an edge before negotiations on a possible solution seems high.
"To a certain extent is a desperate measure, but Nokia has been in the mobile phone business from scratch and has many more patents than Apple, so Apple is likely to some extent at least, has spent some of the patents, Nokia, and perhaps also some others, "said Greger Johansson, analyst with red eyes.
In his complaint with the U.S. International Trade Commission, Nokia allegedly infringes its patents Apple in "almost all mobile phones, portable music players and computers" sold.
Nokia expects the ITC to examine trade issues, including infringement of intellectual property rights to decide whether to pursue the case in about 30 days.
MARKET SHARE
The aggressive come all at Nokia, which has stumbled badly in the rapidly growing smartphone sector, aims to regain market share from the likes of Apple and BlackBerry maker Research In Motion.
"Probably (from), as Nokia has had a difficult time in the last 1-2 years ... if Nokia has made great progress in the smartphone market does not believe it (the patent) would be a big problem," said Johansson.
Tracks newcomer Apple Nokia's mobile phone sales but has been much ground against market leader in the segment of smartphones, thanks to the iPhone.
Apple, which entered the industry in mid 2007, struck out in the fourth quarter as Nokia mobile phone manufacturer to achieve higher overall operating profit.
Both companies earlier this year launched a patent infringement lawsuits against each other.
Analysts say that the conflict might affect hundreds of millions of dollars in annual taxes, reflecting the changing balance of power in the mobile industry such as mobile phones are handheld computers that can play video games and surf the World Wide Web.
Posture
Movement of ITC by Nokia added a new wrinkle to an ongoing case that some analysts say may take years to resolve.
"It's all part of the position as they move towards getting a solution to this further down the road," says Ben Wood, research director at CCS Insight.
Pohjola Bank analyst Hannu Rauhala, added: "It's like arm wrestling and Nokia are trying to strengthen its position in negotiations with Apple."
Nokia is the battle against Apple for its third big fights legal battle with Motorola and Qualcomm's past.
"Nokia is well versed in the tactics you can use in such cases have had much experience with Qualcomm ... this is just another way that Nokia is considering," Wood of CCS Insight said.
"I think Nokia wants a quick end to this because Qualcomm lawsuits, including a substantial drag on both sides ... it was a complete distraction from the core business," he said.
Nokia said Tuesday it has filed a complaint with the U.S. International Trade Commission (ITC) that Apple has infringed its patents on almost all mobile phones, portable music players and computers.
Total accuses Nokia Apple to come in seven different patents to create the main components of their products in the user interface and camera, antenna and power management technologies. These patented technologies are said to allow Nokia to provide better user experiences, lower production costs, build smaller units and provide greater battery life.
"Nokia has been the main driver of many key technologies in small electronic devices," said Paul Melin, General Manager of patent licenses, Nokia. "This action is to protect pioneers such development results.
Tuesday complain about signs of rising tensions between the two powers in the world mobile phone. In October, Nokia sued Apple in a city court in Delaware, USA, on the grounds that the manufacturer of the iPhone was illegal to use the technology, 10 of its GSM and wireless LAN-related patents, the company has invested more than 40 million.
"While our litigation in Delaware is on Apple's attempt to free ride on the back of Nokia's investment in wireless standards, ITC filed the case is now on Apple's practice of building your business at Nokia's own innovation," said Melin.
Mobile phone manufacturer in the world, claims to have successfully signed licensing agreements with about 40 companies for the first 10 patents. Industry experts have speculated it is likely that Nokia seeks compensation from Apple in the form of salary in the range of $ 6 to $ 12 per iPhone instead of an injunction that would halt sales of the touchscreen phone.
Earlier this month Apple Nokia countersued, charging the company with headquarters in Finland to "steal" the technology of 13 of its own patents. The complaint also claims that Nokia are trying to get more money from Apple to other companies, in addition to intellectual property rights, as the producer of the iPhone - after all, the Finnish firm was committed to non-discriminatory licensing.
"In seeking to Apple, Nokia has tried to gain an unfair competitive advantage over Apple by charging unreasonable fees for use of patents that are supposed to solve the compatibility standards of the industry and trying to get access to Apple's intellectual property," Apple wrote in its complaint. "Nokia has access to Apple's intellectual property, because Nokia has been copied and is now using patented technology."
Apple added that Nokia "remained focused on traditional wireless phones with conventional user interfaces," while the iPhone has revolutionized the way consumers are using smartphones.
"As a result, Nokia has lost market share rapidly in high-end mobile phones. Nokia has acknowledged that as a result of the iPhone launch," the market has suddenly changed and the [Nokia was] to change quickly enough said. In response, Nokia chose to copy the iPhone, especially its enormous popularity and patented design and interface. "
As the iPhone has grown in popularity, Nokia has maintained its status as market leader, but has lost significant market share it once dominated. As late as August, Nokia Symbian mobile platform is said that 50 percent of the market, well below the 72 percent of the platform was in 2006. In the second quarter of 2009, the iPhone accounted for 14 percent of the global smartphone sales.
While Nokia continues to monitor the market, Apple's competitors and Research In Motion said that profits far exceeding their market share. More specifically, industry analysts expressed the belief month operating profit of Apple's iPhone is the highest in the mobile phone industry, helping it to overtake market leader Nokia to claim the crown for Cultural phone during his quarter profits last year.
Apple declined to comment on the transfer of Nokia ICC, which only refers to its patent counterclaim earlier this month, but analysts said a strong response was likely.
"Probably Apple will respond with a counterclaim, and may come and go," said Johansson, red eyes.
