{"id":7190,"date":"2010-02-02T06:38:44","date_gmt":"2010-02-02T11:38:44","guid":{"rendered":"http:\/\/www.iposgoode.ca\/?p=7190"},"modified":"2010-02-02T06:38:44","modified_gmt":"2010-02-02T11:38:44","slug":"clash-of-the-smartphone-titans-nokia-vs-apple","status":"publish","type":"post","link":"https:\/\/www.yorku.ca\/osgoode\/iposgoode\/2010\/02\/02\/clash-of-the-smartphone-titans-nokia-vs-apple\/","title":{"rendered":"Clash of the Smartphone Titans - Nokia vs. Apple"},"content":{"rendered":"

Amanda Branch\u00a0is a J.D. Candidate at Osgoode Hall Law School, and is taking the Patent Law course.<\/em><\/p>\n

Clashes between large companies are hardly uncommon, particularly when the salient issue concerns valuable intellectual property. Recently, Nokia has filed a lawsuit<\/a> in the US against Apple claiming 10 alleged patent infringements<\/a> involving wireless data, speed coding, security and encryption. Nokia is demanding back royalties on all iPhones sold since the launch in 2007, which could mean that Apple would have to pay Nokia anywhere<\/a> from $200 million to $1 billion.<\/p>\n

<\/p>\n

Nokia has invested<\/a> approximately EUR 40 billion dollars in research and development over the past two decades and has agreements in place with 40 firms to allow them to use Nokia\u2019s technology. Nokia says Apple has not signed such an agreement. Nokia has recently posted a quarterly loss, their first loss in over a decade, largely due to customers moving from Nokia<\/a> models to the iPhone<\/a> and Blackberry<\/a>.<\/p>\n

Some<\/a> believe this lawsuit may be a desperate move made by Nokia in reaction to its loss of market share, with others<\/a> going so far as to hypothesize that this lawsuit would not have been launched had Nokia been making better progress in the smartphone market. Conversely, it is argued<\/a> the claim could have some merit to it as Nokia has many more patents than Apple, so it is possible that Apple, to some extent, has used some of Nokia\u2019s patents. Similarly, others<\/a> believe Apple may have a hard time defending their case, as they are a late entrant in the mobile phone market and it would be almost impossible to create a mobile phone without using Nokia\u2019s patented technologies.<\/p>\n

Although the case has been filed in a US court, for the purpose of this blog, I will consider the Canadian provisions as the Canadian Patent Act<\/em><\/a> <\/em>is the focus of Professor Mgbeoji\u2019s Patent Law course. According to section 42 of the Act<\/em>, the patentee is granted the \u201cexclusive right, privilege and liberty of making, constructing and using the invention and selling it to others to be used\u201d. As stated in the case of Whirlpool v. Camco<\/em><\/a>,<\/em> if any person, without the consent or permission of the patentee, does any of the exclusive rights granted by section 42, they have infringed the patent and are potentially liable to the patentee. Section 55(1) says that the infringer is liable to the patentee for all damage sustained by the patentee. Therefore, if Nokia is successful in proving that Apple has done something that only Nokia has the exclusive right to do, Apple will be liable for damages.<\/p>\n

Much of the focus has been on Apple\u2019s position in this lawsuit. Apple may be able to put forth a defence as allowed by section 59 of the Act<\/em>. So far, Apple seems to be denying<\/a> that they have infringed Nokia\u2019s patents. This is certainly a defence, one in which Apple would have the burden of proof to show that the acts complained of did not infringe on Nokia\u2019s patent, or that the scope of Nokia\u2019s claims do not capture the alleged infringement. Apple could also argue they had Nokia\u2019s consent to use the patents; however, given Nokia\u2019s denial of such a licence, and Apple\u2019s denial that they had used Nokia\u2019s patents, this approach seems less likely. In Canada and the US, in order for an invention to be patented, it must be novel, non-obvious and useful, so a line a defence for Apple would be to attack the validity of the patents on the grounds that the invention is not \u201cnew\u201d, that the invention is not \u201cuseful\u201d or that the invention is \u201cobvious\u201d to a person skilled in the art. Attacking a patent on the grounds of novelty was an effective defence in the case of Gibney v. Ford Motor<\/em> [52 C.P.R. 140<\/a> ] where it was held that the defendant did not infringe a patent because the patent was invalid on the grounds that it was not a \u201cnew\u201d invention. Lastly, Apple could create a defence on the grounds that Nokia is not the person entitled to the patent, perhaps because they are not the true inventor (as was the case in 671905 Alberta Inc. v. Q'Max Solutions Inc<\/em><\/a>.).<\/p>\n

No matter what defence Apple chooses, it is expected<\/a> that this case could go on for years with Apple putting forth a persistent and tenacious defence, as they take accusations of infringement very seriously. This case could get particularly complicated as the U.S. International Trade Commission has agreed<\/a> to look into Nokia\u2019s patent-infringement claims. Analysts argue<\/a> that a licensing deal may be the best and quickest solution for both companies.<\/p>\n","protected":false},"excerpt":{"rendered":"

Amanda Branch\u00a0is a J.D. Candidate at Osgoode Hall Law School, and is taking the Patent Law course. Clashes between large companies are hardly uncommon, particularly when the salient issue concerns valuable intellectual property. Recently, Nokia has filed a lawsuit in the US against Apple claiming 10 alleged patent infringements involving wireless data, speed coding, security […]<\/p>\n","protected":false},"author":2140,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","footnotes":""},"categories":[69,10,1],"tags":[523],"class_list":["post-7190","post","type-post","status-publish","format-standard","hentry","category-infringement-copyright-ip","category-patents","category-uncategorized","tag-amanda-branch-ipilogue-editor"],"yoast_head":"\nClash of the Smartphone Titans - Nokia vs. Apple - IPOsgoode<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.yorku.ca\/osgoode\/iposgoode\/2010\/02\/02\/clash-of-the-smartphone-titans-nokia-vs-apple\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Clash of the Smartphone Titans - Nokia vs. Apple - IPOsgoode\" \/>\n<meta property=\"og:description\" content=\"Amanda Branch\u00a0is a J.D. 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