Could the Patent Dispute with Apple Impact Nokia?


Jan. 31 2017, Updated 2:35 p.m. ET

Apple claims Nokia breached the 2011 patent deal

Nokia (NOK) and Apple have both filed suit against each other. Apple filed its lawsuit in the United States, and Nokia filed two lawsuits—one in the United States and one in Germany.

According to Apple, Nokia is trying to use tactics of a patent troll to extort money from it. Apple claims that Nokia removed some patents from the companies’ 2011 agreement and put them under third-party companies, intending to use them in the future to press it for higher royalty payments.

However, Nokia disputes Apple’s claim, saying that Apple has refused to agree on the licensing of 32 patents. Apple and Nokia also engaged in a patent war in 2011. Apple paid $720 million to Nokia in that settlement.

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Apple discontinues sale of Withings fitness products

Apple (AAPL) has stopped selling Withings fitness products in its stores, according to Apple Insider. Withings was acquired by Nokia early in 2016 for $191.0 million.  The move is seen as a retaliation against Nokia due to the patent dispute between the companies that threatens the iPhone.

Apple is struggling with a shrinking market for the iPhone. Sales of the device fell in fiscal 2016 to 211.9 million units, from 231.2 million units in fiscal 2015.

The company makes devices that are popular with fitness enthusiasts for measuring blood pressure and heart rate. Withings could be viewed as a competitor of Fitbit (FIT), Garmin (GRMN), Microsoft (MSFT), and Apple.


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