Nokia once dominated the global mobile phone market. However, with the sudden emergence of Apple's iPhone, the status of the former industry boss has been threatened. Under the influence of Apple, the mobile market began to shift towards the direction of smart phones, and Nokia missed the tide of this industry change.
Two years ago, Nokia had to sell its mobile phone business to Microsoft, while retaining the telecommunications network equipment business and a group of patent portfolios. This year, Microsoft sold its Nokia-enabled mobile phone business to a new company called HMD Global, and said it will continue to produce low-cost Nokia phones in the future. The company plans to launch a new Nokia smartphone model next year. Nokia seems to be ready to compete with the iPhone again.
Recently, Nokia filed a lawsuit against Apple, accusing Apple products, including many versions of the iPhone and iPad, infringing on its 32 technology patents. According to Sina Technology, these lawsuits were initiated in courts in Dusseldorf, Mannheim and Munich, and in the Eastern District of Texas, USA, involving displays, user interfaces, and antennas. Various patents such as chipset, extended battery life, video encoding, and remote positioning mobile phone applications.
In this regard, Nokia said: "As one of the world's leading innovators, after the acquisition of NSN in 2013 and the acquisition of Alcatel-Lucent in 2016, Nokia now has three high-value intellectual property portfolios. Over the past 20 years, Nokia has invested more than 115 billion euros in research and development, and our thousands of patents are being applied to many important areas, including smartphones, tablets, personal computers and other similar devices. Since 2011, we have reached certain patents with Apple. Since the licensing agreement, Apple has refused to establish a licensing agreement for the Nokia technology patents used in its products."
Irka, head of Nokia's patent business? Ilkka Rahnasto said in a statement: "By continuing investment in research and development, many of the underlying technologies used in today's mobile devices, including Apple products, have been created or contributed to Nokia. We have been trying to negotiate and agree on Apple’s use of these patents, and now we have to take action to defend our rights."
It is worth mentioning that Apple is not willing to be accused in vain, they responded: Nokia now relies on patent licensing to "make money."
Apple said Nokia tried to extort excessive and unfair patent licensing revenues from the company and took legal action against Acacia Research and Conversant Intellectual Property Management, alleging that they colluded with Nokia’s patent claim to “squeeze and extort high Income."
Apple said that Nokia's mobile phone business is in a downturn, so it began to transfer patents to third-party patents to exercise the company, through these patents to exercise the high patent fees charged by the company to obtain huge profits. Such practices seriously undermine the FRAND (Fair, Reasonable, and Non-Discriminatory Terms) guidelines, which are fair, reasonable and non-discriminatory. At present, neither side has commented too much on the lawsuit.
It’s not the first time that the court is in court.
In October 2009, Nokia filed a lawsuit in the US District Court for the District of Delaware, alleging that Apple infringed on a number of underlying technology patents related to GSM, UMTS and WLAN. Subsequently, Apple also "rebelled" against Nokia for patent issues. In 2011, after nearly two years of “mediationâ€, Nokia and Apple finally reached a comprehensive settlement on patent infringement disputes.
Although the two sides did not disclose specific figures, analysts said that Apple will pay Nokia about 420 million euros in compensation at a time, and will pay Nokia subsequent patent royalties based on sales. Based on sales estimates for the year, Apple will spend 95 million euros a quarter, and as the iPhone sales increase, the cost will increase.
After paying for so many years of "buying money", now see "partnership robbery", Apple is certainly not happy; and for Nokia, although the tiger is no longer a tiger, but it is not a sick cat, seeing Apple for so many years "black stamp The stamp "uses the patent, but the cost is not delivered on time, and now it must be said."
The old hatred and new resentment, coupled with Nokia’s recent move to restart the mobile phone business, this dispute may be a long-term battle.
In the past, the mobile phone giant turned into a "patent rogue"?
Not only Apple, in Nokia's "patent war", the well-known mobile phone brands on the market have lost to Nokia.
In 2013, Nokia and Samsung reached a binding arbitration agreement. The agreement will address the issue of patent compensation fees for the two years from 2014. In 2015, Nokia reached an agreement with another Korean mobile phone giant LG in a similar manner, which will also pay a high patent license fee to Nokia.
The same thing happened to HTC. Nokia sued HTC in 2012, claiming that it infringed on its own 45 patents worldwide. This lawsuit of course also ended with HTC paying Nokia.
Although the mobile phone business has become "a day of tomorrow", but one after another patent licensing case still makes Nokia earn a lot of money.
According to statistics, Nokia will receive fees for resolving or arbitrating patent cases between 2016 and 2018, which is expected to reach at least 1.3 billion euros, including Apple, Samsung, HTC, Microsoft, Blackberry, LG, Sony, Motorola, Huawei, etc. About 40 companies within the company need to pay a patent license fee to Nokia.
But Nokia, which has a large number of patents, really makes these giants "brave and dare not speak."
Since the 1980s, Nokia has been working in the mobile phone and communications fields. According to the statistics of the State Intellectual Property Office, as early as March 1987, Nokia began to apply for patents. As of November 26, 2014, Nokia's total search volume was 12,121 pieces. The number of inventions announced by Nokia was 3955, the number of invention licenses was 3,647, the number of utility models was 33, and the number of designs was 1042.
More vividly, Nokia has obtained 7 times the number of patents granted by Apple and 8 times that of HTC. Compared with the domestic, it is 910 times that of Meizu.
Despite the sales turmoil, Nokia still holds about 30,000 patents, covering 2G, 3G, 4G and other mobile communication technology fields, and is well-deserved "mobile phone patent big touch".
Therefore, for Nokia, whose mobile phone hardware business is frustrated, re-launching the mobile phone may be an ambitious "sentimental flash", but "eat the old" looks much easier. However, this old book can't be eaten for a long time now. After all, there are more patents and there are also protection periods.
When the patent also fails, what will Nokia eat afterwards?
Li Junhui, a special researcher at the China University of Political Science and Law's Intellectual Property Law Research Center, said that in the next few years, Nokia's at least 400 invention patents related to mobile phones will be ineffective, including 94 in 2016 and 113 in 2017, 2018. There are 149 items in the year. It is estimated that in the next 10 years, Nokia’s mobile phone patent will be “not worth a pennyâ€. At that time, “patent hooligans†may no longer use this weapon to “rob the roadâ€.
Nokia may also be aware of this issue and begin preparing for the upcoming crisis.
In January of this year, Nokia announced its merger with Alcatel-Lucent, hoping that the latter will generate revenue in the field of network services. However, according to Nokia's third-quarter 2016 financial report, the company's third-quarter revenue was 5.95 billion euros, down 7% year-on-year. Among them, network equipment revenue dropped by 12% to 5.32 billion euros. In addition, TImo IhamuoTIla, the chief financial officer who helped the company restructure and transform Nokia from a mobile phone manufacturer into a network equipment company, will also leave Nokia.
It seems that the transition is not a success. Where will the future of Nokia go?
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