Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Nokia can't stop suing: Files another ITC complaint against Apple

By | March 29, 2011, 3:33am PDT

Summary: Add it up and Nokia alleges Apple is infringing on 46 patents in its various lawsuits.

Nokia on Tuesday said it filed another complaint with the International Trade Commission alleging that Apple infringes on its patents across its entire product line.

In a statement, Nokia said that latest suit focuses on Nokia’s patents “that are now being used by Apple to create key features in its products in the areas of multi-tasking operating systems, data synchronization, positioning, call quality and the use of Bluetooth accessories.”

Nokia filed the latest suit after the ITC ruled that Apple didn’t violate its patents. Nokia obviously doesn’t agree and said it will wait to see the full ruling before figuring out its next steps.

For those of you keeping score at home, Nokia has the following cases going:

  • Two complaints with the ITC;
  • Patent suites filed in Delaware;
  • Cases in Mannheim, Dusseldorf and the Federal Patent Court in Germany;
  • Lawsuits in the U.K. and Netherlands.

Add it up and Nokia alleges Apple is infringing on 46 patents in its various lawsuits.

It has been a bull market for patent lawsuits. Eastman Kodak recently notched a win after the ITC agreed to take a closer look at its patent suit against Apple and Research in Motion. Kodak said it could garner $1 billion in a settlement.

An ITC administrative judge had ruled for Apple and RIM, but now six commissioners will review the case. The final decision is expected in late May.

Related:

Nokia adds Apple’s iPad 3G to its lawsuit parade: The 5 patents in question

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: Nokia can't stop suing: Files another ITC complaint against Apple
SlithyTove 22nd Apr 2011
@DeusExMachina

There are dozens in the Apple vs HTC and Apple vs Samsung lawsuits. I'm sure you know where google is, but here is one for you:

Patent #7,657,849: Unlocking A Device By Performing Gestures On An Unlock Image

Yep, that's a silly patent designed to try and make it impossible to make a rational touch-screen device.

Apple is a highly litigious company. Again, welcome to corporate warfare.
Maybe Apple should just buy Nokia, that way they could shutter the company, and fire elop. Funny that right after they get laughed out of court on their first attempt to slow down the iPhone, they drum up an additional 46 bogus patents. I wonder where the money, and incentive are coming from?
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Microsoft?
DevJonny 29th Mar 2011
@Rick_K

"I wonder where the money, and incentive are coming from?"

If I was being serious about this then I'd answer your question with "Microsoft!". After all they did just pay a large some of money to get Nokia to use WP7.

But I'm not being serious. It's another wait and see case. But it does seem that everyone is suing everyone else over apparent violations.
@DevJonny
If I was being serious about this then I'd answer your question with "Microsoft!". After all they did just pay a large some of money to get Nokia to use WP7.

So that is why Microsoft invested $1 billion in Nokia? To get rid of the competition? I find it funny that who ever makes a deal with Microsoft, suddenly starts acting more like Microsoft. First there was the Yahoo/Microsoft deal, since that deal went through Yahoo messenger for OS X has stalled, no new development. If I am not mistaken it is still in beta form and has not seen any frothier development. Nokia gets a Billion from Microsoft, and now is going litigation happy against Apple. This reminds meow SCO getting money from Microsoft to fight the ?Good fight? against that Evil Cancer called Linux. I guess when you cannot innovate, you litigate your way into the market.
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Rick_K, what's even more interesting is that
Will Farrell Updated - 29th Mar 2011
@DevJonny
is that when people start hunting witches, they always seem to find them, even though they don't exist.

This looks to be your problem.
@DevJonny
According to the press release, approximately 40 other companies, including virtually all leading mobile device vendors, have worked our license agreements with Nokia.

That was in the original blog when this started. Why would 40 companies license the tech from Nokia if it was all bogus?

The apple appologist will just gloss over that fact like it doesn't exist but its a good question to ask!
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@ Will Farrell
MacCanuck 29th Mar 2011
When Nokia first started the suit against Apple, reports were that Apple was trying to negotiate licensing fees but Nokia was demanding higher fees from Apple for the same technology being openly licensed to others (which goes against the norm and agreement for tech/IP submitted for licensing, ie, you're to offer your IP to everyone at a fair/reasonable and similar price without showing favourites)

Nokia was also supposedly asking for (demanding) access to Apple IP which again differs from standard licensing practice.

Nokia basically offered "no comment" to that scenario.

Nokia sees a Golden Goose it wants to pluck and Apple wants the same treatment as other licensees and no doubt feels it shouldn't be unfairly (illegally?) fleeced due to it's success vs others.
@MacCanuck

Please don't confuse him with facts, they make his head explode. Please note, however, that the only person "glossing over" facts here is Will Farrell.
@Rick_K

"I wonder where the money, and incentive are coming from? "

Well considering that Nokia has been suing MS since long before the MS deal was a twinkle in Elop's eye, the answer would be... Nokia!

Not that MS wouldn't do it (everybody, including Apple throws lawsuits around), but in this case it wouldn't need to throw it's weight around since Nokia was already throwing it's weight around.

Usually these sorts of deals are resolved by cross-licensing of IP, but Apple doesn't have much in the way of IP to make a deal with given it's newcomer status to cell phones.

The popularity of the iPhone makes it less likely that it would actually get shut out of the U.S. market regardless of the claims. Just look at how quickly RIM was turned back on when all those government officials crackberries stopped working.
@SlithyTove
Usually these sorts of deals are resolved by cross-licensing of IP, but Apple doesn't have much in the way of IP to make a deal with given it's newcomer status to cell phones.

Did you read the original suit documents? Nokia wanted to charge AApple anywhere between 5 and 10 time what they charge Motorola, HTC etc, and have a perpetual license to all of Apple?s IP. This was the sticking point. Nokia basically was offering a protection scheme: ?You hand over a license to all of your IP (For all products), and pay us what we ask, or we?ll sue? is the basic claim.
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Will everybody quit picking on Apple!!
Will Farrell 29th Mar 2011
@Rick_K
My god this is APPLE we're talking about here - they are all what is good in this world they would NEVER steal IP, EVER!!

I can't take it anymore, these "haters" saying mean things about apple!! I just want to cry -
@Will Farrell So you think it's okay for Nokia to charge Apple 10x the licensing fees they charge everyone else AND have a license to ALL of Apple's IP (which is something they didn't try with anyone else)? Oh let me guess it's only because it's Apple.

And if this was Microsoft, Samsung, HTC, or Motorola that Nokia was attempting to rob like this I'd be asking the same thing. And if you recall Nokia was told by the ITC that Apple did not violate any of their patents... This is either sour grapes, envy, or spurred on by Microsoft in an attempt to level the playing field and put a hurt on the popularity of iOS.
@Rick_K

Did you read the original suit documents? Nokia wanted to charge AApple anywhere between 5 and 10 time what they charge Motorola, HTC etc, and have a perpetual license to all of Apples IP

And, from what I understand of the original suit the reason they were asking for so much more is precisely because Apple, unlike Motorola, did not have much in the way of useful phone IP to cross-license. Virtually all of Apples real patent IP is related to software rather than hardware and software patents don't usually stand up very well and are thus not as useful as a bargaining chip.

Nokia basically was offering a protection scheme: You hand over a license to all of your IP (For all products), and pay us what we ask, or well sue is the basic claim.

That pretty much describes the entire patent system: it's either a "protection racket" or a "competition kill."

It's no different than Apple trying to use some of its more dubious patents to shut down anyone else building touch screen devices.

Apple wants to legally prevent its competition from being able to compete and Nokia is asking an arm and a leg for "protection". Welcome to corporate warfare.
@SlithyTove

And please post a single example of Apple doing that. Hint: Apple has never claimed to have patented multitouch, so you can give up on THAT false meme right off the bat.
@DeusExMachina

There are dozens in the Apple vs HTC and Apple vs Samsung lawsuits. I'm sure you know where google is, but here is one for you:

Patent #7,657,849: Unlocking A Device By Performing Gestures On An Unlock Image

Yep, that's a silly patent designed to try and make it impossible to make a rational touch-screen device.

Apple is a highly litigious company. Again, welcome to corporate warfare.
@Rick_K

Here Steve Jobs about suing HTC:
"We can sit by and watch competitors steal our patented inventions, or we can do something about it. We've decided to do something about it," said Steve Jobs, Apple's CEO. "We think competition is healthy, but competitors should create their own original technology, not steal ours."

Maybe somebody at Nokia thinks like Steve Jobs. On the other hand, if you have seen some patents, patents are made in a way that they cover a maximum area in a vague manner. That is the reason why the owner of the patent (Apple, Nokia, whoever) always sees it in the most broad way. If these patents were licensed by other people, but Apple did not want to pay, but used them anyway. I guess they broke the law. Then again, the whole patent system is flawed, if there are multiple ways to understand these documents.

Maximus
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None of which were invented by Nokia
guihombre 29th Mar 2011
And none of the things listed were invented by Nokia.

I'm beginning to think there is negative value in patents, not just limited value.
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Nokia suit info
MacCanuck Updated - 29th Mar 2011
for the Apple hating whiners (you know who you are).

As reported in various articles...

http://www.techcrunch.com/2009/12/11/apple-nokia-lawsuit-copy-phone/

http://techcrunch.com/2009/12/11/apple-nokia-patent-dispute/

http://www.businessweek.com/globalbiz/content/oct2009/gb20091022_488948.htm

http://www.roughlydrafted.com/2009/12/11/the-real-patent-story-behind-apple-vs-nokia/

Some have an irrational hatred for Apple and anything it does or produces, especially since it often leads the way (see all the iPhone wannabes and Windows 7).

Nokia is no angel here and any rips on Nokia are well deserved re this suit and it's "reported" attempts to extort money from Apple.

NOTE... Nokia has not refuted Apple's claim, or if it has, it's been very quiet and not reported which in a PR war, wouldn't make sense. If Apple's claim is not true, why not say so on Nokia's part? Doesn't mesh with original high profile charge re Apple.
How quaint you all think it's unfair for Nokia to charge differently depending on the success of a company. Insurers do this all the time, and life and death rides on their decisions, not just some yuppies toy. That's why companies get group rates while the unemployed can't get affordable health insurance. Get a grip. That's Capitalism and fairness isn't a relevant concept.
@rkatcher

Please reread Adam Smith before making declarative statements about an economic system (capitalism) you CLEARLY do not understand. And while you're at it, you might want to bone up on patent law. Hint: it does not work like insurance law.
@DeusXMachina

Adam Smith: "He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it . By preferring the support of domestiek to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain... " Nokia seeks it's own gain. It cares not about the well being of Apple or Microsoft or anyone else. Greed in ones self interest is the essence of Capitalism...as expressed by Mr. Smith himself.
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@Actually, Adam Smith was quite clear about the pitfalls of unfettered capitalism, and that, left unchecked, the greed of corporate entities would constitute an evil upon mankind. It is all well and good to quote him out of context (especially if you pull the quote out of the very beginning of the text) but your choice of quotes, and your opinions thereon, make it quite clear that you did not make it very far into "Wealth of Nations".
Had you done so, or even actually read it at all (as opposed to just having quotes doled out to you like disjointed talking points) you might have noticed that Smith was QUITE clear about the limitations on the "invisible hand", and the "good of greed", and equally clear about the role of government in restoring equilibrium and fairness where necessary. As Noam Chomsky pointed out, Adam Smith went to great pains to explain that the invisible hand has the potential to destroy the possibility of a decent human existence and that, "unless government takes pains to prevent" this outcome, as must be assured in "every improved and civilized society," it destroys community, the environment, and human values generally, and even the masters themselves, which is why the business classes have regularly called for state intervention to protect them from market forces.

Please reread (or read for the first time, apparently) Adam Smith before making declarative statements about an economic system (capitalism) you CLEARLY do not understand

""Every tax, however, is, to the person who pays it, a badge, not of slavery, but of liberty."

-- Adam Smith
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Whether they're "rules", the law
MacCanuck 29th Mar 2011
or just guidelines, technology/IP submitted and distributed as "standards" are to be licensed fairly and equally across the board.

From some of the articles I linked to previously...

"The patents in question are part of industry standards, and as such Nokia must license them under fair and reasonable terms, argues Apple. But instead, Nokia tried to put the squeeze on Apple. Apple states in its countersuit:
In dealing with Apple, Nokia has sought to gain an unjust competitive advantage over Apple by charging unwarranted fees to use patents that allegedly cover industry compatability standards."


?Left unconstrained, owners of patents that purportedly cover certain features within the standard could take advantage of lock-in and demand exorbitant royalties from designers, knowing that it would be less costly for the designer to pay the excessive royalty than to incur the cost of switching. This is commonly referred to as a patent hold-up.?

"While the suit is presumably intended to force Apple to cough up royalty payments, it could also be a negotiating tactic by Nokia to gain access to Apple technologies via a settlement. But Richard Windsor of brokerage Nomura International in London says the suit isn't "as big as it looks." Nokia is pursuing claims, he says, for "essential patents" that it is required to share at reasonable cost-not more rarefied intellectual property for which it could charge what it likes. That likely gives Nokia less leverage at the bargaining table."

Bottom line... Nokia seems to want Apple to pay more for licensing it's tech than others which is counter to offering up it's IP as open standards. (plus it's rumoured demand for access to Apple's IP)

Not similar to your insurance example and it should have no bearing on Apple's success or not.
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Sted Jobs
Maxi J 29th Mar 2011
"We can sit by and watch competitors steal our patented inventions, or we can do something about it. We've decided to do something about it," said Steve Jobs, Apple's CEO. "We think competition is healthy, but competitors should create their own original technology, not steal ours."
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It's all business,
MrElectrifyer 29th Mar 2011
Apple has been doing the same thing to (check out what they are suing Amazaon over). It keeps the competition aggressive and the money flowing.

That's how every business on planet Earth does it; make more money, much faster.
The heirs of Rasputin need to sue the Apple marketing department for patent violations.

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