Ways ahead in Nokia-Apple legal battle

Finding a winner in the battle between Nokia, the world's largest cellphone maker, and iPhone maker Apple could take years unless they agree on a licensing deal outside the courtroom.

Nokia dominates the global handset industry but has lost ground in the high-end of the market to new players like Apple which entered the market with its iPhone in mid-2007.

On Oct 22, Nokia accused U.S.-based Apple of hitching a “free-ride" on the Finnish company's technology investments.

Following are the main scenarios of the legal battle starting to unfold:

CASE IN DELAWARE

Nokia filed its suit in the District Court of Delaware, United States, saying Apple had infringed 10 patents in technologies like wireless data transfer, a key factor in the success of iPhone.

The patents also cover speech coding, security and encryption, and are infringed by all iPhone models shipped since the iPhone was introduced in 2007, Nokia said.

The case is expected to last 2-3 years, and analyst estimates for compensation Nokia is seeking range from $200-million to $1-billion.

Apple is expected by analysts and lawyers to countersue, in which case the two suits could be merged.

“I would not be surprised to see a counter-claim from Apple citing patents it owns that it believes Nokia is infringing," said Ben Wood, research director at CCS Insight. “This type of tit-for-tat approach has occurred in previous patent battles as each player tries to improve its negotiating position."

ATTACKING PATENTS

The Delaware case could be stayed for re-examination of patents or if one of the companies takes the case to the U.S. International Trade Commission (ITC).

It is unlikely someone could make a mobile phone without using technologies Nokia has patented, but lawyers said that would not prevent Apple questioning the patents.

Nokia has successfully attacked patents of Qualcomm as part of the major global legal fight which lasted from 2005 to 2008, and also of InterDigital earlier this year.

“There are so many ways to attack a patent," patent lawyer Alton Hornsby from law firm Merchant & Gould said.

A patent's novelty and non-obviousness are often questioned.

Apple could ask patent office to invalidate the patents or to review them in the U.S. Patent Office, where interparty re-examination could take 6-7 years.

“It would definitely cause a ripple in the industry if Apple were to invalidate those patents. Where would it put all the other companies?" Hornsby said.

Nokia has cross-licensing deals with 40 companies, including all top cellphone makers but Apple.

OTHER VENUES – U.S. ITC, EUROPE

If the case drags on, Apple or Nokia could take it to European countries, as happened in the Nokia-Qualcomm battle.

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