Apple’s Nokia Deal may cost Android producers Too

Apple’s patent licensing deal with Nokia may have some further consequences past the immediate results of the agreement. with the aid of agreeing to a protracted-term licensing agreement with Nokia, Apple will get a lengthly, defensive legal struggle out of the best way. this permits Apple to focus all its felony energies on main battles with Samsung, HTC and Motorola.

speaking with the NYTimes, Apple signifies that the contract is in truth a move-licensing one:

Apple and Nokia have agreed to drop all of our present court cases and enter into a license protecting some of every other?s patents, but now not the majority of the innovation that makes the iPhone unique. we are satisfied to place this at the back of us and get back to specializing in our respective companies.

There a bigger, far more strategic victory here as neatly. through agreeing to pay royalties for Nokia’s patents, Apple has set a market value — and given Nokia’s patents serious legitimacy. Apple would not pay anything else in the event that they didn’t need to, and other companies would possibly not need to battle over turf Apple has already acquiesced to Nokia.

different companies, particularly Android handset manufacturers, could now need to play ball with Nokia on these patents — they usually don’t necessarily have the margins to ship 1% of gross revenues to Nokia as easily as Apple can. actually, as a result of Apple has so many of its personal patents (a few of which it move-licensed to Nokia) different producers will have to pay much more for a similar licenses.

Florian Mueller has advised simply that at FOSS Patents:

given that Android is in some ways a rip-off of Apple’s running tool, Android-based units are extremely likely to infringe on mostly the identical Nokia patents that Apple now felt forced to pay for.
this is a candy defeat for Apple as a result of its competitors — particularly these building Android-based devices — may even need to pay Nokia, and most if no longer all of them will seemingly need to pay extra on a per-unit basis as a result of they do not convey as a lot intellectual property to the desk as Apple unquestionably did.

Apple can pay off Nokia, but exposes the competition as neatly. competitors that does not have as much cash or mental property to barter with.

(photograph with the aid of Acaben/Flickr)

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