Nokia invokes a 'NATO defense' strategy against Apple's iPhone

By Scott M. Fulton, III | Published October 27, 2009, 2:42 PM

The usual reason commonly given for the creation of technology standards is to enable a more open, seamless process for licensing and adoption. But in its lawsuit filed last week against iPhone maker Apple, Nokia is attempting a rather interesting spin on this definition, a spin which may very well reflect reality: It argues that standards are broadly licensed in order to increase the size of the market which those standards can address.

As a result, when a transgression against the standard comes about -- for instance, by way of failure to pay royalties -- the rights holders throughout the market enabled by that standard, have a duty to come to its defense. An attack against one, in other words, is an attack against the whole portfolio.

In its lawsuit filed last Thursday, Nokia alleges that it has been actively negotiating with Apple for fair and reasonable licensing terms ("F/RAND") for the use of GSM technologies in all of Apple's iPhones. Nokia is an acknowledged rights holder, not only for GSM but for HSPA (a.k.a. HSDPA), the 3G platform behind the iPhone 3G S. It claims, "Apple has rejected Nokia's offers for the F/RAND terms and conditions both on a portfolio and on a per-patent basis and thereby refused to compensate Nokia on F/RAND terms for the use of Nokia patented technology, including the [eleven] patents-in-suit."

Nokia did not specify dates, so conceivably Apple could have rejected Nokia as early as 2007; however, a good defense lawyer might argue that if Nokia didn't act on that refusal then, it lost its right to do so two years later. So the likeliest scenario is that Apple refused Nokia more recently.

But Nokia's theory of Apple's infringement is perhaps less important with regard to future legal precedent than its statement that it has a duty to the market at large to defend against that transgression, inevitably using the broadened size of that market as a factor in evaluating the scale of the infringement.

"Standards Setting Organizations ('SSOs') are formed to allow wide promulgation and utilization of commonly defined standards," begins Nokia's reasoning. Not to create the standards, not to develop the technology, but specifically and expressly to broaden the market. "These standards must be available and accessible in order to produce the intended efficiency gains and benefits and thereby for the standardization process itself to comply with competition law." In other words, it was antitrust law that forced companies to certify that standards were available for everyone to license in the first place, implying that it is therefore the duty of smaller competitors that wish to become competitive, to either play by the rules of the standard or build its own technology platform and try to compete that way.

"Intellectual Property Rights policies ('IPR Policies')," Nokia's suit continues, "provide essential IPR holders committing to license on F/RAND terms with the benefit of collecting F/RAND compensation from a far larger market than they would have enjoyed if the protected technology had not been incorporated in the standard. Because competing proprietary technologies and systems have been abandoned in favor of a single, universal, and standardized system and set of technologies, a holder of an essential IPR can collect royalties on a large volume of standards-compliant products from a wide variety of manufacturers worldwide. In contrast, if the IPR holder's protected technology was only used in one of a number of competing systems or proprietary technologies, the patent holder could only generate returns on its R&D investments through differentiation and -- if it chose to license -- only collect royalties from manufacturers who chose to market and sell products for the narrow proprietary technology. This is why committing to F/RAND licensing is advantageous and rarely refused by essential IPR holders."

A rights holder such as Nokia, the suit goes on, by definition waives the right to exclude any other company in partaking in the standard. Thus Nokia can't exactly withhold licensing as a way of compelling, or extorting, a company such as Apple into compliance. Implementers have a duty to enter into a licensing arrangement, and rights holders in the standard have a duty to negotiate with them. If an implementer refuses, since the only other course of punitive action against that implementer is to seek a court injunction barring the sale of its products, then a rights holder has no other alternative but to defend the standard as a whole.

"Nokia has irrevocably undertaken the obligation to grand license(s) on F/RAND terms and conditions to its essential patents, including the patents-in-suit, and Apple has the corresponding right to claim licenses on F/RAND terms on the basis of Nokia's undertakings," the lawsuit complaint continues.

So to review: A kind of "globalization," if you will, has forced a situation where there must be one set of standards in order to level the playing field between competitors. Thus whenever a competitor transgresses against that set of standards (the unspoken word here being "platform"), the principal rights holder must come to the defense of those standards as a whole. It's as though Nokia has drawn a NATO-like boundary around all of GSM, saying that if you enter into that realm it's with the intention of leveraging GSM as a platform, and if you don't pay your respects to the superpower in the region, then you don't respect the platform.

On the other hand, there's the much simpler issue of Nokia apparently never being paid. Not knowing yet the nature of Apple's rejection of Nokia's terms, but knowing the extent to which Nokia is regarded as the principal rights holder to GSM technology, one does have to wonder just what Apple was thinking by withholding any kind of royalties whatsoever from Nokia. Anyone doubting Nokia's ability to defend GSM could have simply looked it up in Betanews, under "Nokia" and "Qualcomm." Perhaps Apple might have thought Nokia's terms unfair; in which case, it had ample opportunity to raise objections. Of course, doing so in a public court during the iPhone's formative period would have given away Apple's secrets; but it's had nearly three years now to make amends.

But if Nokia eventually succeeds in defending GSM, even through a settlement, the possibility exists that Nokia's arguments with respect to what is a standard may be perceived as setting legal precedent: a way to make markets bigger and more centralized, and to clearly establish the principal rights holders in those markets, so it's clearer to everyone involved where to send the checks.

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How to Choose a 2010 Prom Dress

You are so excited. You thought this big event would never get here. Here it is only months away and now you have to choose the Prom Dresses that will make you look beautiful and feel confident. There are so many different styles and colors available in Prom Dresses. This is the reason you need to start shopping months before the big event.

Take the time to find out what style best suits you and your body shape. Find out what is popular this year. Trends change drastically every year and you want to be the new girl.

Before Shopping for 2007 Prom Dresses

It is always a good idea to look through up-to-date magazines such as Seventeen, Prom Magazine, and even bridal magazines. You would be surprised at the different fashions you will see and the great ideas from the models in these magazines. If a dress really catches your eye, tear out the page and take it with you when you go shopping for your prom dresses.

Another timesaving step is to take your measurements before you go shopping. Jot down your height and weight. This will give you more time to look. This information will come in handy when you decide to go online and shop.

Knowing how much you have in your budget and which price range best suits you will also save you time.

Shopping for Your Gown

Once you have jotted down your measurements and have set your budget, it's time for the fun part. SHOPPING!!!! Go to every dress shop that you can find in your area or you may have to shop out of town. Visiting different shops will give you an idea of what styles are available this year.

Try on several different Prom Dresses at each shop to help you determine what style and color suits you. If your budget is low, check out the outlet stores and thrift shops in your area. You may be surprised at the dresses carried by these shops. Bridal shops are also a great place to shop for your Prom Dresses.

When choosing your prom dress, you want the dress that best suits your figure. Always buy a dress that fits you now. Do not buy a size smaller and hope that on prom night you can fit into the dress. When shopping for your prom dresses, it is best to shop at stores where the employees can help you and give you advice if needed.

Bright, bold colors seem to be the trend at this time. These colors tend to be eye-catching and bring color to your face. Beads and jewels draw attention by catching the light on your gown.

Keep in mind your undergarments that you will need to purchase such as a strapless bra or corset. You may want to purchase these Prom Dresses before you shop for your dress so you will have them available when you try on gowns.

Remember, keep your options open. If you have shopped 'til you dropped and still have not found that dream dress for your 2007 prom, you can go to a tailor shop and have them design a dress just for you or surf online at your own convenience.

How to Choose a 2010 Prom Dress

You are so excited. You thought this big event would never get here. Here it is only months away and now you have to choose the Prom Dresses that will make you look beautiful and feel confident. There are so many different styles and colors available in Prom Dresses. This is the reason you need to start shopping months before the big event.

Take the time to find out what style best suits you and your body shape. Find out what is popular this year. Trends change drastically every year and you want to be the new girl.

Before Shopping for 2007 Prom Dresses

It is always a good idea to look through up-to-date magazines such as Seventeen, Prom Magazine, and even bridal magazines. You would be surprised at the different fashions you will see and the great ideas from the models in these magazines. If a dress really catches your eye, tear out the page and take it with you when you go shopping for your prom dresses.

Another timesaving step is to take your measurements before you go shopping. Jot down your height and weight. This will give you more time to look. This information will come in handy when you decide to go online and shop.

Knowing how much you have in your budget and which price range best suits you will also save you time.

Shopping for Your Gown

Once you have jotted down your measurements and have set your budget, it's time for the fun part. SHOPPING!!!! Go to every dress shop that you can find in your area or you may have to shop out of town. Visiting different shops will give you an idea of what styles are available this year.

Try on several different Prom Dresses at each shop to help you determine what style and color suits you. If your budget is low, check out the outlet stores and thrift shops in your area. You may be surprised at the dresses carried by these shops. Bridal shops are also a great place to shop for your Prom Dresses.

When choosing your prom dress, you want the dress that best suits your figure. Always buy a dress that fits you now. Do not buy a size smaller and hope that on prom night you can fit into the dress. When shopping for your prom dresses, it is best to shop at stores where the employees can help you and give you advice if needed.

Bright, bold colors seem to be the trend at this time. These colors tend to be eye-catching and bring color to your face. Beads and jewels draw attention by catching the light on your gown.

Keep in mind your undergarments that you will need to purchase such as a strapless bra or corset. You may want to purchase these Prom Dresses before you shop for your dress so you will have them available when you try on gowns.

Remember, keep your options open. If you have shopped 'til you dropped and still have not found that dream dress for your 2007 prom, you can go to a tailor shop and have them design a dress just for you or surf online at your own convenience.

Score: 0

|

How to Choose a 2010 Prom Dress

You are so excited. You thought this big event would never get here. Here it is only months away and now you have to choose the Prom Dresses that will make you look beautiful and feel confident. There are so many different styles and colors available in Prom Dresses. This is the reason you need to start shopping months before the big event.

Take the time to find out what style best suits you and your body shape. Find out what is popular this year. Trends change drastically every year and you want to be the new girl.

Before Shopping for 2007 Prom Dresses

It is always a good idea to look through up-to-date magazines such as Seventeen, Prom Magazine, and even bridal magazines. You would be surprised at the different fashions you will see and the great ideas from the models in these magazines. If a dress really catches your eye, tear out the page and take it with you when you go shopping for your prom dresses.

Another timesaving step is to take your measurements before you go shopping. Jot down your height and weight. This will give you more time to look. This information will come in handy when you decide to go online and shop.

Knowing how much you have in your budget and which price range best suits you will also save you time.

Shopping for Your Gown

Once you have jotted down your measurements and have set your budget, it's time for the fun part. SHOPPING!!!! Go to every dress shop that you can find in your area or you may have to shop out of town. Visiting different shops will give you an idea of what styles are available this year.

Try on several different Prom Dresses at each shop to help you determine what style and color suits you. If your budget is low, check out the outlet stores and thrift shops in your area. You may be surprised at the dresses carried by these shops. Bridal shops are also a great place to shop for your Prom Dresses.

When choosing your prom dress, you want the dress that best suits your figure. Always buy a dress that fits you now. Do not buy a size smaller and hope that on prom night you can fit into the dress. When shopping for your prom dresses, it is best to shop at stores where the employees can help you and give you advice if needed.

Bright, bold colors seem to be the trend at this time. These colors tend to be eye-catching and bring color to your face. Beads and jewels draw attention by catching the light on your gown.

Keep in mind your undergarments that you will need to purchase such as a strapless bra or corset. You may want to purchase these Prom Dresses before you shop for your dress so you will have them available when you try on gowns.

Remember, keep your options open. If you have shopped 'til you dropped and still have not found that dream dress for your 2007 prom, you can go to a tailor shop and have them design a dress just for you or surf online at your own convenience.

Score: 0

|

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I don't find the use of the motion sensor in the iPhone to be counter-immersive (and yes, the adjective exists, as of the second you posted the article, that's the way languages remain dynamic 8D), althouogh some executions of it are a bit silly (like shaking the unit while playing Tap Defense to activate Earthquake Towers, very immersive but it disrupts gameplay as you have to reestablish

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"So the likeliest scenario is that Apple refused Nokia more recently."

Someone should point Carmi to this article...

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LOL, exactly what I was thinking. I would've went ahead and said it, but I'd already beaten up on Mr. Levi today.

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This was the analysis I was waiting for :)

Nokia was the prime mover for years in wireless, primarily by virtue of its R&D efforts. Now its regarded as lagging behind. Apple is standing on the shoulders of Nokia the same way Microsoft did with Novell - "borrowing" their standard-setting technologies and acting like it was just low-hanging fruit on public land. If memory serves this is hardly Apple's first trip to the licensing woodshed, which is doubly ironic because Apple itself has contributed to just the sort of common standards that Nokia's allegation talks about (although I don't know if they were ever the sole inventors of USB or certain SCSI technologies as some have claimed in the past).

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Lagging behind? If you are judging the "race" solely by the iPhone, then...possibly. If you are judging it by the numbers, then they are, in fact still quite a bit ahead of anyone else.

So if the iPhone is the epitome of "smart" phones, then you're right. But many would in fact, disagree with such an assessment.

As for the failure of the patent system, well... We've known that for decades now. Funny how our Government still seems to be stuck in the 20's as far as doing anything about is concerned though.

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I'm actually not judging it by either measure - I'm just reiterating what I've seen in the overwhelming majority of opinions in print (online or otherwise). But you're pretty much dead-on about the reality of the industry..Nokia isn't going anywhere, and may well be getting tired of it's perceived stodginess. I certainly hope so: if I can be accused of being any sort of "fanboy" then it would a Nokia one. They've always delivered the best total package of "-ility's" in the business - reliability, durability, longevity, functionality, practicality. And there are a TON of Symbian apps out there, although some of the best are locked out by American carriers. If I lived in Europe I wouldn't even consider using anything else. But I have seen what the iPhone can do, and I would be lying if I said I wasn't impressed. Its limited ability to multitask and the lack of a true QUERTY option are its biggest flaws, IMO. Ultimately I think the iPhone's most lasting effect is the way its forcing the entire industry to make their products more useful.

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Those prints are mainly from the United States where Nokia barely exists.

There is a world beyond the United States you know,

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I totally agree with you AtriusNY. I have lived in both worlds. Nokia and the likes of Samsung are light years ahead of Iphone. We are talking of phones with true 3G capabilities and 12MP Cameras. It's like comparing a corvette to the likes of Ferrari or Aston Martins. Nokia has 85% of the world market.The world has 6 billion people of which 365 million are Americans.Nokia is not very visible in the states but its the default phone allover the world.

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