Amassing a large portfolio of patents is a common protection method for
large companies. Patent anything plausible and add them to your quiver
in case somebody sues you. The intent isn't competitive advantage by
exploiting those discoveries in your own products, but rather as a path
to mutually assured damage. If you sue me for stepping on your patent,
I'm sure I can come up with five of my own you're stepping on, so back
off. Then it comes down to messy court battles with suits and
countersuits to see who holds the best hand and has the deepest pockets.
Sometimes these things get settled and there is a press release about
the glorious new world where to friends are going to mutually assist
each other by cross-pollinating their technology portfolios. Other times
somebody goes down and has to cough up cash.
I got to experience some of this as a Vonage VOIP customer as they were
sued by Verizon under patents they had for doing VOIP. Apparently VZ had
these patents for sometime, patents to deliver really cheap high quality
telco over plain old IP, and they did nothing. Then Vonage came along
and once they got big enough to be a competitor VZ trotted out their
patents and trounced Vonage in court. Why would VZ be interested in
rolling out a product or service that was lower cost and competed with
their own high-margin services? They wouldn't, and with their patents
they could make sure nobody else did either.
So it will be interesting. Is Apple blatantly stomping on Nokia's
patents and think they wouldn't get caught or that the patents were
weak/obiovus? Did Nokia have these just in drydock in case somebody like
Apple stumbled upon a better but less profitable way to do something?
Maybe they were submarine patents that Nokia held in secret just in case
somebody came up with something competitive. Only the courts and lawyers
are going to have the time and details to sort all that out.
Fun reading on mutually assured damage:
http://www.smh.com.au/articles/2004/07/30/1091080437270.html
And the related submarine patent:
http://en.wikipedia.org/wiki/Submarine_patent
CB
Bryan Smart wrote:
The article says
----------
During the last two decades, Nokia has invested approximately EUR 40 billion
in research and development and built one of the wireless industry's
strongest and broadest IPR portfolios, with over 11,000 patent families.
----------
Not 11,000 patents, but 11,000 patent families. Probably way, way more patents.
Microsoft, Apple, and IBM also have patent libraries that you wouldn't believe.
They're held in reserve like strategic nuclear weapons. If you make a widget
with a button on it, IBM probably owns a patent, coiling kinetic energy storage
system to inhibit task activation, I.E. the spring in your button. If you use a
membrane panel instead, Nokia probably owns a patent, polymer device for
inhibiting closed electrical circuit through conical relief cells. You might
not know that, and go on building your widgets for a while. They might not even
care. One day, though, if they want you out of business, they'll show up,
demand a licensing fee for your springs, and, if you don't pay, they'll file
and injunction and take away your springs. If you switch to membranes, they'll
sue your supplier for patent infringement. If you think that sounds crazy, then
you'll have to prove it in court. By the time you do, you'll be out of money,
and they'll be back to business as usual.
Although, after going after Nokia with some silly obvious patents, Apple
deserves to get a little taste of its own medicine. Nokia doesn't expect to
win. They are just telling Apple that, if they don't drop their claims, Nokia
can make life very unpleasant for them.
The patent system needs to die. It's just a way to shut the small guy out while
giving the big boys tools to use for threatening each other and forming
alliances of threat.
Bryan
-----Original Message-----
From: [email protected] [mailto:[email protected]]
On Behalf Of Sarah Alawami
Sent: Saturday, May 08, 2010 5:54 PM
To: mac vissionaries
Subject: o.t, maybe. Nokia sues Apple in Wisconsin for infringement of Nokia
patents
Subject: NOKIA - Nokia sues Apple in Wisconsin for infringement of Nokia patents
NOKIA
Nokia sues Apple in Wisconsin for infringement of Nokia patents
Espoo, Finland - Nokia announced that it has today filed a complaint against
Apple with the Federal District Court in the Western District of Wisconsin,
alleging that Apple iPhone and iPad 3G products infringe five important
Nokia patents.
The patents in question relate to technologies for enhanced speech and data
transmission, using positioning data in applications and innovations in
antenna configurations that improve performance and save space, allowing
smaller and more compact devices. These patented innovations are important
to Nokia's success as they allow improved product performance and design.
"Nokia has been the leading developer of many key technologies in mobile
devices" said Paul Melin, General Manager, Patent Licensing at Nokia. "We
have taken this step to protect the results of our pioneering development
and to put an end to continued unlawful use of Nokia's innovation."
During the last two decades, Nokia has invested approximately EUR 40 billion
in research and development and built one of the wireless industry's
strongest and broadest IPR portfolios, with over 11,000 patent families.
Nokia is a world leader in the development of handheld device and mobile
communications technologies, which is also demonstrated by Nokia's strong
patent portfolio.
About Nokia
At Nokia, we are committed to connecting people. We combine advanced
technology with personalized services that enable people to stay close to
what matters to them. Every day, more than 1.2 billion people connect to one
another with a Nokia device - from mobile phones to advanced smartphones and
high-performance mobile computers. Today, Nokia is integrating its devices
with innovative services through Ovi (www.ovi.com), including music, maps,
apps, email and more. Nokia's NAVTEQ is a leader in comprehensive digital
mapping and navigation services, while Nokia Siemens Networks provides
equipment, services and solutions for communications networks globally.
FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not historical
facts are forward-looking statements, including, without limitation, those
regarding: A) the timing of the deliveries of our products and services and
their combinations; B) our ability to develop, implement and commercialize
new technologies, products and services and their combinations; C)
expectations regarding market developments and structural changes; D)
expectations and targets regarding our industry volumes, market share,
prices, net sales and margins of products and services and their
combinations; E) expectations and targets regarding our operational
priorities and results of operations; F) the outcome of pending and
threatened litigation; G) expectations regarding the successful completion
of acquisitions or restructurings on a timely basis and our ability to
achieve the financial and operational targets set in connection with any
such acquisition or restructuring; and H) statements preceded by "believe,"
"expect," "anticipate," "foresee," "target," "estimate," "designed,"
"plans," "will" or similar expressions. These statements are based on
management's best assumptions and beliefs in light of the information
currently available to it. Because they involve risks and uncertainties,
actual results may differ materially from the results that we currently
expect. Factors that could cause these differences include, but are not
limited to: 1) the competitiveness and quality of our portfolio of products
and services and their combinations; 2) our ability to timely and
successfully develop or otherwise acquire the appropriate technologies and
commercialize them as new advanced products and services and their
combinations, including our ability to attract application developers and
content providers to develop applications and provide content for use in our
devices; 3) our ability to effectively, timely and profitably adapt our
business and operations to the requirements of the converged mobile device
market and the services market; 4) the intensity of competition in the
various markets where we do business and our ability to maintain or improve
our market position or respond successfully to changes in the competitive
environment; 5) the occurrence of any actual or even alleged defects or
other quality, safety or security issues in our products and services and
their combinations; 6) the development of the mobile and fixed
communications industry and general economic conditions globally and
regionally; 7) our ability to successfully manage costs; 8) exchange rate
fluctuations, including, in particular, fluctuations between the euro, which
is our reporting currency, and the US dollar, the Japanese yen and the
Chinese yuan, as well as certain other currencies; 9) the success, financial
condition and performance of our suppliers, collaboration partners and
customers; 10) our ability to source sufficient amounts of fully functional
components, sub-assemblies, software, applications and content without
interruption and at acceptable prices and quality; 11) our success in
collaboration arrangements with third parties relating to the development of
new technologies, products and services, including applications and content;
12) our ability to manage efficiently our manufacturing and logistics, as
well as to ensure the quality, safety, security and timely delivery of our
products and services and their combinations; 13) our ability to manage our
inventory and timely adapt our supply to meet changing demands for our
products; 14) our ability to protect the complex technologies, which we or
others develop or that we license, from claims that we have infringed third
parties' intellectual property rights, as well as our unrestricted use on
commercially acceptable terms of certain technologies in our products and
services and their combinations; 15) our ability to protect numerous Nokia,
NAVTEQ and Nokia Siemens Networks patented, standardized or proprietary
technologies from third-party infringement or actions to invalidate the
intellectual property rights of these technologies; 16) the impact of
changes in government policies, trade policies, laws or regulations and
economic or political turmoil in countries where our assets are located and
we do business; 17) any disruption to information technology systems and
networks that our operations rely on; 18) our ability to retain, motivate,
develop and recruit appropriately skilled employees; 19) unfavorable outcome
of litigations; 20) allegations of possible health risks from
electromagnetic fields generated by base stations and mobile devices and
lawsuits related to them, regardless of merit; 21) our ability to achieve
targeted costs reductions and increase profitability in Nokia Siemens
Networks and to effectively and timely execute related restructuring
measures; 22) developments under large, multi-year contracts or in relation
to major customers in the networks infrastructure and related services
business; 23) the management of our customer financing exposure,
particularly in the networks infrastructure and related services business;
24) whether ongoing or any additional governmental investigations into
alleged violations of law by some former employees of Siemens AG ("Siemens")
may involve and affect the carrier-related assets and employees transferred
by Siemens to Nokia Siemens Networks; 25) any impairment of Nokia Siemens
Networks customer relationships resulting from ongoing or any additional
governmental investigations involving the Siemens carrier-related operations
transferred to Nokia Siemens Networks; as well as the risk factors specified
on pages 11-32 of Nokia's annual report Form 20-F for the year ended
December 31, 2009 under Item 3D. "Risk Factors." Other unknown or
unpredictable factors or underlying assumptions subsequently proving to be
incorrect could cause actual results to differ materially from those in the
forward-looking statements. Nokia does not undertake any obligation to
publicly update or revise forward-looking statements, whether as a result of
new information, future events or otherwise, except to the extent legally
required.
Media Enquiries:
Nokia
Communications, North America
Tel. +1 914 368 0423
Email: [email protected]
Nokia
Communications
Tel. +358 7180 34900
Email: [email protected]
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