Apple is a big company with a lot of money and really enjoys letting smaller companies know that by suing them whenever they unwittingly infringe on one of their many patents. It’s been that way for years and has resulted in many companies having to stop production on products and pay a hefty sum into Apple’s coffers. When they stepped into the mobile world Apple thought they’d be able to push everyone around again but, unfortunately for them, there is a company who pretty much run at the top of all sectors of the mobile world and who have just as much money as them. This company, let’s call them Nokia for argument’s sake, aren’t only invested in making phones, they are actually one of the companies that evolve the industry with new technology on the network front and, as such, have over ten thousand patents related to technology that is considered essential to making a mobile phone (connecting to the network, and using any GSM, UMTS or WLAN technologies) and that all other phone manufacturers licence from them for a fee.

“The basic principle in the mobile industry is that those companies who contribute in technology development to establish standards create intellectual property, which others then need to compensate for. Apple is also expected to follow this principle. By refusing to agree to appropriate terms for Nokia’s intellectual property, Apple is attempting to get a free ride on the back of Nokia’s innovation.”
Ilkka Rahnasto, Vice President, Legal & Intellectual Property for Nokia

The patents are usually licensed on the principle “fair, reasonable and non-discriminatory terms” and while licences have been paid by most companies in the business, Nokia has signed agreements with other technology patent holders allowing shared usage, creating a small group of the companies who create the industry as it is today and license their technology to all other companies in the business. All companies except for Apple who have decided they don’t need to pay such license fees. Nokia has noted that Apple has infringed on patents that cover wireless data, speech coding, security and encryption and that the infringements are present in all three versions of the iPhone. Having pursued their license fees behind the scenes for two years (Nokia prefers to leave legal action as the last possible choice) unsuccessfully, Nokia has been left with no further choice but to sue and legal action was announced on the 22nd of October 2009. Apple haven’t contributed anything to the networks meaning they’re in no position to do a patent swap like the other big companies and will lose a substantial amount of money in this case even if they settle.

So, the big bully of the technology playground has met someone equally big who doesn’t normally throw their weight around, and is getting it’s ass handed to them by that normally pacifist kid in the playground. As well as being an analogy of my school days that, my friends, is karma.


28 thoughts on “Karma

  1. I saw this news when it first went up but got it stuck private while finishing it off, so decided to repost it today. A few of my sources have quit the business recently, cutting down my knowledge of events so I haven't been writing as much about mobile stuff recently.I've been waiting for something like this for a while now. Considering the iPhone is already sold at £900 SIM free (twice what phones with the same hardware go for), Apple will obviously pass their legal costs on to consumers and price themselves out of the market. Networks that hold the iPhone are already posting losses due to the stringent nature of the deal Apple negotiates with them and several think it's over-priced already so they're turning it down.

  2. Hope? I doubt they could lose this one. :lol:.It reminds me of the Kodak instant camera. It was a direct ripp-off of the Polaroid Land camera except that the cartridges of the two cameras were slightly different and hence incompatible with each other. The only downside to that story was that when Polaroid won the court case, it discouraged all other camera manufacturers from trying to produce similar products. So the Polaroid Land camera's officially became the only ever instant camera. The upside of that is that most camera manufacturers turned to digital as an instant camera alternative. Thus rendering the Polaroid technology redundant. :p.(was that off on a tangent or what? :left:)

  3. You can't really price Apple out of the market when their target audience don't care about anything but the Apple logo. Plaster it on a hundred old T68's and walk through anywhere marketing people live, and I bet they'd all be sold within 30 minutes for about £200 each :pNice to see this happening to Apple at last 😀

  4. That's the thing though. £200 is an affordable price for phones. £900 isn't, especially when you consider that they decide which network you're allowed to use (using their software updates to disable phones owned by people that dare to exercise their rights and unlock from the network) can wipe applications from your device after you've paid for them and refuse to give you a refund, and basically dictate how you're allowed to use the phone as well as what files you can put on it.Apple has been dictating these things to owners (plus what sort of services networks are allowed to give with their phone) since they first released the phone on contract and, if they increase the price, there's no way they'll be able to keep that up. So the next iterations of the iPhone will have worse services from the networks and cost more while not as many networks will be clamouring for it as the latest must have fashion device.

  5. I'm blinking back tears of happiness right now, as I've just found out this suit is going to cost Apple anything from $200 million to $1 billion depending on how many of the 34 million iPhones sold worldwide were 2G models and how many were 3G. The best part? That's if Nokia are only after their license fees and not looking for damages on top of that. It's so much fun backing the right horse. :happy:

  6. This is only one part of the Apple cult. There was a huge story on how Apple blatantly stole the ads of several marketing campaigns to use as their own. Apple has for years been neglectful, of Artists domain rights, but yet they execise theirs so callously.

  7. And now they're finally up against someone with an equal bank balance who has right on their side and over 10,000 patents in the mobile business of which Apple are violating only 10 that they've named so far. Basically Apple just bit off more than they can chew by screwing over a company that can really hit them where it hurts. While the following probably wont happen it's worth considering when you look at this case and the worst possible way it could turn out. Nokia developed the majority of America's mobile networks and license the technology out to them so, despite the name not being as big over there as Apple is, there's a bigger consequence to the country if they lose the case. In that event they, and all other mobile tech providers outside the country, are being told that all their mobile technology licenses mean nothing in America. A statement like that causes the foreign tech companies to pull out of America, sell their current network technology (worth billions) to the American networks or take it with them and strand American networks in billions of debt or with technology that's from ten years ago.

  8. A little tip for you. Next time you get someone into bed, if they start giving a detailed view of a possible future for a country based on the outcome of a court case… Well, let's just say that they're not having an orgasm, no matter what they tell you afterwards. 🙄

  9. I bet if I'd said "no matter what they tell you afterwards, as you sob into your pillow." I'd have gotten three LOL smileys there. Tut, you never think of these things until after someone's already seen what you said. :worried:

Have Your Say:

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s