Nokia launches a legal war against Apple seeking damages and iPhone injunction

 Nokia Oyj accused Apple Inc with a "free-ride" on Nokia's technology investments as the manufacturing of iPhone devices hurt the companies predominant position at the market.

The lawsuit filed with the U.S. District Court for the District of Delaware cites 10 patents that relate to technologies fundamental to devices using GSM, UMTS and/or wireless local area network (LAN) standards. Those patents cover wireless data, speech coding, security and encryption and are infringed upon by all iPhone models shipped since the iPhone was introduced in 2007.

Nokia seeks compensation for Apple’s use of its patents and injunction for a period until Apple pays the damages along with interests. The amount was not specified.

"Apple's wireless communication devices take advantage of the decades of continued investments by Nokia to build today's communication protocols," Nokia said in the filing. "By refusing to compensate Nokia for its patented technologies, Apple is attempting to get a 'free-ride' on the billions of dollars that Nokia has invested."

The suit is expected to have an impact on Apple, as analysts think, because the company is a biggest net payer of royalties in the market. The company came later than others into the industry and it has limited intellectual property assets compared with rivals, when all vendors work under cross-licensing agreements.

In the filing Nokia stated that it had made numerous offerings to Apple so as to sign a licensing agreement but the iPhone maker declined all of them.

"This is about competition against Apple," said Alfred Zaher, partner and intellectual property attorney at Blank Rome LLP in Pennsylvania. If Apple settles the lawsuit, it may represent tens of millions of dollars, at most, over a 10-year period, he noted. Yet, in view of the fact that Nokia is facing an eroding market position that could represent billions of dollars.

"I don't think Apple is as concerned about the patent infringement lawsuit from a global perspective as would be Nokia, looking at its market share and what it's losing," Zaher said.

Even if Apple were to pay past due royalties, "it would still enjoy a market share it otherwise would not have but for a period of 'free-riding,'" the complaint said.

Nokia said that because it was difficult to predict whether it can regain market share lost to Apple, "Nokia's harm cannot be compensated by payment of" past due royalties alone.

Legal battles over as many as 10 technology patents can easily take several years.