"Patent lawsuits in the wireless industry are fairly common, almost standard practice, and cross-licensing agreements are usually the resulting settlement," says Andy Hargreaves, an analyst at Pacific Crest Securities. "It usually takes several years for any cash involvement to be determined, but it normally doesn't impact the bottom line." Nonetheless, Hargreaves notes that
In its suit, Nokia says the five patents in question relate to technologies for enhanced speech and data transmission, using position data in applications and innovations in antenna configurations that improve performance and save space. The handset maker said these innovations allow for smaller and more compact devices, along with improved product performance and design.
Nokia said it is seeking "appropriate damages and injunctive relief" for what it says is
By the end of trading Friday, Apple shares -- which were caught up in the shocking market slump Thursday afternoon -- were down another 4.2%, or $10.39, to $235.86, while American depository receipts of Finland-based Nokia were 0.8%, or 9 cents, higher at $10.75.
The suit was filed as Apple announced its iPad would become available in nine additional countries on May 28, with pre-orders starting Monday. These countries include Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the U.K. In July, the device will become available in Austria, Belgium, Hong Kong, Ireland, Luxembourg, Mexico, Netherlands, New Zealand and Singapore.
Apple delayed the international release of the iPad because of unexpectedly strong demand in the U.S. The latest gizmo from Steve Jobs and Co. went on sale in April, and moved a million units in its first 28 days. (See “For Apple, A Million iPads Is Just The Start.”)
The iPad and iPhone are among an increasingly crowded application-driven device market, which includes the Kindle from
