| Dispute between Apple and Nokia heating up as ITC Starts Apple Investigation |
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27/01/2010 16:42 (840 Day 04:10 minutes ago) | |||||
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The FINANCIAL -- The International Trade Commission (ITC) started an investigation on January 25 into Nokia’s claims that Apple infringes on its patents in almost all of its products, based on a complaint filed by Nokia in late December.
In total, Nokia has accused Apple of treading on seven distinct patents to create key features in products through the user interface, camera, antenna and power management technologies. Nokia officials believe Apple has infringed on patents it owns that have led to key advances in small electronic devices, Apple Insider reports.
According to Reuters, the ITC could choose to ban Apple from selling products in the U.S., if it finds the Cupertino, Calif., company to be in violation. A Nokia spokeswoman said the company was "pleased" that the ITC had begun its investigation quickly.
But weeks after Nokia filed its ITC complaint, Apple fired back with a lawsuit of its own. Apple has asked the ITC to ban handset imports from Nokia, and it's possible the commission could also choose to investigate Apple's claims as well, Apple Insider informs. Given that Apple filed its ITC complaint weeks after Nokia, such a decision would likely be made in the near future.
Both companies have sued each other in the United States, and both have turned to the ITC. The trade body has yet to decide if it will launch an investigation based on Apple's request, as Reuters wrote. The ITC can ban selling products in the United States – a crucial market for Apple, but Nokia makes only a fraction of its sales there. Analysts have said the ITC could ease the path toward agreement between the two firms. The dispute is expected to last for more than a year, with Nokia seeking payment of up to 1 billion euros ($1.415 billion).
Nokia has stumbled badly in the fast-growing smartphone sector and relative newcomer Apple has gained a lot of ground against the market leader thanks to the iPhone, but still trails Nokia in smartphones sales, ABC News informs. Apple, which entered the industry in mid-2007, overtook Nokia in the September quarter as the cellphone maker generating the highest total operating profit.
The legal dispute, potentially involving hundreds of millions of dollars in annual royalties, reflects the shifting balance of power in the mobile industry as cellphones morph into handheld computers that can play video games and surf the Web, the same source reports.
Nokia is seeking payments of up to 1 billion euros, or $1.415 billion, from Apple. Some industry watchers have predicted that the battle of two Goliaths could last up to three years, according to Apple Insider. Apple, in the past, said that it would "vigorously" defend itself from Nokia's claims. Apple executives were asked about the Nokia patent dispute during Monday's quarterly earnings conference call, but declined to comment.
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