Tech giant Apple could be forced to pay up to $US1 billion for the technology used in its iPhone devices as a result of legal action initiated by handset manufacturer Nokia, according to an industry analyst.
The Finnish company is going head-to-head with Apple regarding 10 of its patents relating to wireless technology it says were used without permission.
Ben Wood, research director at CCS Insight told ITNews.com.au the company could have a case, as the technology in question is widespread and used in handsets manufactured by other companies.
“It is almost inconceivable that someone can produce a mobile phone without using Nokia patented technologies,” Wood said.
“Intellectual property licensing costs create a significant barrier for late entrants into the mobile phone space. As a result they become net payers to the big established players such a Ericsson, Motorola, Nokia and Qualcomm.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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