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Microsoft And Nokia Win the Patent War Uncontested

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Microsoft And Nokia Win the Patent War Uncontested

The recent verdict on Apple Inc. (NASDAQ:AAPL) vs Samsung Electronics Co., Ltd. (LON:BC94) has the potential to bring a major change in the smartphone market, at least in the United States. The jury’s decision has released analysis and reports that explain how the win can be beneficial for Windows and Nokia. The timing of this trial could not have been better, Apple Inc. (NASDAQ:AAPL) is releasing its brand new iPhone 5 in September and iPad mini in October, while Nokia is launching its WP8 possibly on September 5th followed by Microsoft unveiling its first ever tablet named Surface, somewhere in late October.

Moving on to how Apple’s win will help both partners i.e Nokia Corporation (NYSE:NOK) and Microsoft Corporation (NASDAQ:MSFT). We have known it for some time now that iPhones, iPads, and Android won over the legends of Nokia and Microsoft, by changing the brand perception. Apple Inc. (NASDAQ:AAPL) and Android became hot and wanted, while Windows phones seemed outdated and unattractive. Now that Samsung Electronics Co., Ltd. (LON:BC94), the leader in the smartphone market worldwide, as well as the US, has been labeled and proven as a copy cat, the ‘coolness’ has vanished, at least for those who bought it for its popularity, rather than worth. What is the fresh and original alternative? Windows phones and tablets, as in terms of originality and patents, there is no competitor of Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (NYSE:NOK). Both companies are pioneers in their respective fields, and in their high times they have set the stage for many innovations, however they were not able to reap the full rewards.

Analysts at ABG Sundal Collier, a Nordic investment bank, have detailed how Microsoft and Nokia Corporation (NYSE:NOK) together win the patent war, even without an actual fight. The analysis exlains how Apple banks heavily on design and look, rather than actual engineering. Microsoft Corporation (NASDAQ:MSFT) has a whole truckload of patents to its name (through Nortel’s and AOL patent acquisitions) and from its partner Nokia Corporation (NYSE:NOK). About 50k patents fall in either the direct or indirect control of Microsoft Corporation (NASDAQ:MSFT), which is three times the number of Google Inc (NASDAQ:GOOG), and ten times of those held by Apple. Moreover Microsoft Corporation (NASDAQ:MSFT) and Nokia have cross-licencing patents signed with Apple Inc. (NASDAQ:AAPL), by which Nokia Corporation (NYSE:NOK) gained USD 430m through sale of iPhone and iPad, in the period of 2007-2011.


Microsoft And Nokia Win the Patent War Uncontested

While Apple Inc. (NASDAQ:AAPL) is basking in the aftereffects of its victory, the tech giant could be severely affected by this verdict. If Samsung is successful in avenging its defeat, it could raise problems in the supply of chipsets that are used in application processors in Apple’s products. If that happens, Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (NYSE:NOK) will again benefit from this tug of war. The analysis views Windows 8 platform as a “blessing in disguise” for the retailers and carriers who will now move on to attractive alternates in the shape of Surface tablets and WP8.

The anticipation for Windows Phone 8 to launch is now, higher than ever.


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Tabinda Hussain

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