June 1, 2012

Nokia Claims Google’s Patent Infringement Accusations Unjust

A day after Google made accusations that Nokia was conspiring with software titan Microsoft to make money off patents that didn´t belong to them, the Finnish cellular company fired back, saying Google claims were invalid.

Google filed a formal complaint to the European Commission on Thursday, alleging that Microsoft and Nokia had transferred 1,200 patents to MOSAID, a “patent troll” that makes money by taking legal action over patent infringements.

Nokia spokesman Mark Durrant on Friday told Reuters that “Google's suggestion that Nokia and Microsoft are colluding on intellectual property rights is wrong.” He added that both Nokia and Microsoft “have their own intellectual property rights portfolios and strategies and operate independently.”

Durrant also noted that some Android devices had “significant (intellectual property) infringement issues” relating to Nokia patents as well.

Google´s accusations emphasize the aggressive nature of competition seen in the mobile phone industry where companies, including Nokia, are fighting to maintain intellectual property rights over wireless technologies.

Nokia´s future is threatened by declining sales in handsets and a faltering presence in the market. However, its patent portfolio has become a valuable and stable mainstay for the company.

Nokia already earns roughly $618 million a year in royalties from its mobile patent portfolio. Some analysts have said that a more determined application of its patents rights could boost income for the telephony by hundreds of millions of dollars per year.

Microsoft called Google´s accusation a “desperate tactic” from a company that controls more than 95 percent of mobile search and advertising.