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Dec. 30, 2009

Nokia says that yesterday it has filed a complaint with the U.S. International Trade Commission (ITC) alleging that Apple’s computers, iPhone and iPods all infringe on no less than seven Nokia patents.

The patents in question cover various technology used in wireless devices’ user interface, camera, antenna and power management system.

The complaint comes just barely two months after Nokia filed a similar lawsuit against Apple in a Delaware U.S. District court, alleging that the iPhone infringes on ten patents that cover technologies which connect devices to various wireless networks.

"This latest action is all about protecting the results of such pioneering development,” said Paul Melin, General Manager, Patent Licensing at Nokia.

He added “and while our litigation in Delaware is all about Apple's attempt to free-ride on the back of Nokia investment in wireless standards, the ITC case filed today is about Apple's actual practice of building its business on Nokia's proprietary innovation, and this is exactly what we want to stop at this point."

Later, Apple then countersued Nokia, claiming the handset maker was infringing on thirteen of its patents.

Apple has also claimed that Nokia’s technology licensing fees exceeded industry standards.

So for now, Nokia is awaiting the Court's procedural documents to move forward in the case.

We are expecting more news on this in the week of Jan. 4.

Nokia Siemens Networks (NSN) said it is planning an important company reorganization of its business units in an effort to return the struggling infrastructure company to growth and profitability.

NSN also added that there will be layoffs in the coming weeks.

The wireless equipment manufacturer said the cost cutting measures were in response to changes in the global economy and an increasingly competitive environment.

Last month, Nokia Siemens said it will cut between 7 percent and 9 percent of its current workforce as part of a plan to save over $730 million from its operating expenses by the end of 2011.

NSN currently employs close to 64,120 employees. In addition to the cost-cutting measures, its 5 business units will be realigned into three: Business Solutions, Network Systems and Global Services. A spokeswoman for Nokia Siemens could not provide details on how yesterday's announcement affects the North America region.

The news comes only weeks after the company reported a twenty-one percent drop in sales, which fell to $4 billion from $5.13 billion in 2008. Nokia Siemens also said its market share would drop by more than previously expected this year, but didn't specify how much the decline could be.

Rajeev Suri, Nokia Siemens Networks' CEO said "as our customers make buying decisions, they want a strong infrastructure partner that engages in issues well beyond a traditional discussion of technology."

He added "business models, innovation, growth and transformation are now very much front and center when it comes to the selection of a technology partner, and our proposed new company structure will position us well in this changing market."

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Source: Nokia.