Nokia Launches Another Patent Attack On Apple, Uses ITC Loophole To Get Second Shot At Hurting Apple

from the can't-compete? dept

Tue, Dec 29th 2009 4:52pm — Mike Masnick

We've seen how Nokia's troubles in keeping up in the smartphone market have resulted in suddenly filing a whole bunch of patent lawsuits, including the big one against Apple over the iPhone. Of course, as usually happens in these types of situations, Apple fired back with a patent infringement lawsuit of its own against Nokia. Welcome to patent nuclear war.

And, of course, if you thought the battles would end there, you haven't been paying attention to how patent battles work these days. For years now, we've been pointing out that many patent holders actually get two cracks at companies over the same exact patents. They sue in the courts, and they use the ITC loophole to get a second crack, which could have even worse consequences. You see, the International Trade Commission is supposed to watch out for unfair trade practices. So many patent holders go to the ITC and claim that companies that infringe on patents are using unfair trade practices and should be barred from importing those goods into the US. Of course, the ITC could rely on the courts to determine if the products are actually infringing, but it does not. It decides for itself. And while the ITC cannot issue fines, it can issue an injunction barring the import of these products. With so many high tech products being manufactured overseas, this creates an effective injunction against selling many high tech products in the US... even as the Supreme Court has made clear that injunctions don't always make sense. But, the ITC is not bound by the Supreme Court on this and can do what it wants. A recent study has shown that this ITC loophole is frequently abused.

So, it's not at all surprising that (yes, indeed), Nokia has jumped in with both feet and has filed a complaint with the ITC as well over the Apple iPhone and its alleged infringement on Nokia patents. So now we have two totally seprate processes, either of which could conceivably bar Apple from selling iPhones in the US, just because Nokia's been too slow in coming up with its own iPhone competitor. That's not encouraging innovation at all. It's proactively trying to use the US government to slow it down.

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Filed Under: itc, loophole, patents
Companies: apple, nokia

23 Comments

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Yes - it's sarcasm, 29 Dec 2009 @ 4:56pm

It's nice to see patents being used for their intended purposes.
/s
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ChurchHatesTucker (profile), 29 Dec 2009 @ 5:09pm

In before Anti-Mike
Obviously, Apple is destroying Nokia's potential profits...
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DenisV, 29 Dec 2009 @ 6:16pm

It's not that simple
Those are not the same patents Nokia sues for in Delaware, and the scope is not limited to iPhones, but to iPods and iMacs as well.

And, ummm, Nokia is not a struggling beggar. It still is the largest cell phone manufacturer in the world, with a huge market share. It doesn't need an "iPhone competitor", it has a portfolio of those.
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JackSombra (profile), 29 Dec 2009 @ 6:23pm

"It doesn't need an "iPhone competitor", it has a portfolio of those."
As someone who generally hates Apple (control freaks) and won't buy an Iphone on principal and who own's a N97, one of Nokia's latest attempts at a "iphone competitor" i would dispute that statement, what Nokia has is a portfolio of "Failed iPhone competitors"
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Anonymous Coward, 29 Dec 2009 @ 6:47pm

Re: It's not that simple
Meaning that ipods and imacs will no no longer be importable in the US? Just clarifying.
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Ronald J Riley (profile), 29 Dec 2009 @ 6:49pm

Is Apple A Serial Infringer?
There is a reason that Apple keeps getting sued. Maybe they should start acquiring rights before use.

Ronald J. Riley,

I am speaking only on my own behalf.
Affiliations:
President - www.PIAUSA.org - RJR at PIAUSA.org
Executive Director - www.InventorEd.org - RJR at InvEd.org
Senior Fellow - www.PatentPolicy.org
President - Alliance for American Innovation
Caretaker of Intellectual Property Creators on behalf of deceased founder Paul Heckel
Washington, DC
Direct (810) 597-0194 / (202) 318-1595 - 9 am to 8 pm EST.
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Anonymous Coward, 29 Dec 2009 @ 6:53pm

Re: It's not that simple
Meaning that ipods and imacs will no no longer be importable in the US? Just clarifying.
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ChurchHatesTucker (profile), 29 Dec 2009 @ 7:10pm

Re: Is Apple A Serial Infringer?
tl;dr
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ScaredOfTheMan, 29 Dec 2009 @ 7:17pm

This is a Tell
I don't care that nokia " is the largest cell phone manufacturer in the world" it only has that title because it makes cheap phones for china. Nokia used to be the leader in mobile handsets, with awesome phones like the E90, they were the standard in business phones. Now they are relegated to dominating the dumb handsets market.... woo hooo. While RIM and Apple and now even Motorola with the Droid eat their lunch.

Based on reading TD for the last few years it seems whenever a company can't compete, they sue. It's like announcing to the world, we simply have no other options to generate revenue or battle our competitors so here come the hail mary.
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Anonymous Coward, 29 Dec 2009 @ 7:32pm

Re: Is Apple A Serial Infringer?
So, since Nokia is also being sued for infringing patents, perhaps they should start acquiring rights before use as well.

Also, I hold a patent on moronic signatures. Pay up.

I am speaking only on behalf of the list of 17 shill organizations below me (and a dead person).
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Anonymous Coward, 29 Dec 2009 @ 8:31pm

Re: It's not that simple
Nokia sells lots of cheap phones but they don't have the near equivalent of an iPhone or android phone in the high end market in the US.
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bob, 29 Dec 2009 @ 10:32pm

They Should
Apple should do the same thing to Nokia.
Then have the final assembly in one of the border factories.
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Azrael, 30 Dec 2009 @ 12:03am

Re: Re: It's not that simple
Actually Nokia invented the smartphone. All that Apple has done was to make a crummy one and remove its keyboard.
But since it was an iCrap and the moron fashionistas are plenty, it was a success.
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Darren, 30 Dec 2009 @ 2:54am

Amusing take on the whole thing here
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Mr Big Content, 30 Dec 2009 @ 3:40am

Something’s Wrong
This is the USian “International” Trade Commission, right? It’s supposed to be something that USian companies can use against foreign competition, right? So how come Nokia gets to use it against Apple?
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Salim Fadhley, 30 Dec 2009 @ 5:21am

DIfferent motivations
Nokia is not suing Apple simply *because* Apple are beating Nokia in the lucrative high-end handset market... but because they can.

Do you think for one moment that Apple would not sue Nokia if there was something they thought they could gain? That's the way modern litigation works. It's just part of business as usual.
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jsl4980 (profile), 30 Dec 2009 @ 6:26am

Great news for AT&T
This is great for AT&T they're probably praying this injunction begins right about the time their exclusive contract ends. Plus the less iphones there are the better AT&T's network will look.
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Vincent Clement, 30 Dec 2009 @ 6:52am

Re: Is Apple A Serial Infringer?
Maybe the US should prohibit patents on software?

Maybe the USPTO should stop issuing broad patents in the first place?

Maybe Apple should seek an injunction against Nokia from the ITC?

In the end who wins? Lawyers. Who loses? Consumers.
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Freaky Friday, 30 Dec 2009 @ 10:16am

Re: Re: Re: It's not that simple
Actually Nokia invented the dumbass. All that Azrael has done is to become a bigger one and remove its reason.
But since he is an iChode and the moron dumbassistas are plenty, he thought he had a point.
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Anonymous Coward, 30 Dec 2009 @ 10:17am

Re: Re: Re: Re: It's not that simple
LOL!
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Anonymous Coward, 30 Dec 2009 @ 10:19am

Re: Is Apple A Serial Infringer?
We really couldn't give half a shit who you are affiliated with, but thanks for the spam.
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Ballmer Suck Ass, 30 Dec 2009 @ 10:29am

Re: Re: Re: Re: It's not that simple
Well played Sir.
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Anonymous Coward, 30 Dec 2009 @ 11:42am

Re: Re: Re: Re: Re: It's not that simple
While I'm not entirely sure how well played this was, I am at least gratified that the user of the phrase "Well Played" at least had the mental capacity to understand the context under which the phrase is to be used and to correctly use it.

Good on ya.
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