Amazon has filed a lawsuit against Nokia, accusing the Finnish tech firm of violating a dozen of its patents related to virtual machine and networking technology used in Amazon Web Services (AWS). The complaint, filed in a Delaware court on July 30, 2024, claims that Nokia used this patented technology in its cloud and network services division, which includes the Nuage and CloudBand offshoots launched in 2020. “Nokia’s ‘new company strategy’ involved leveraging Amazon’s innovative solutions, including Amazon’s patented technology, to address issues faced by cloud service providers,” the filing states.
Amazon also criticized Nokia’s business history in the 186-page lawsuit, pointing out, “Amazon’s two decades of groundbreaking technological development in cloud computing stand in stark contrast to Nokia’s recent efforts.”
The filing further states, “Nokia’s failure to anticipate the importance of smartphone technology led it to the verge of bankruptcy in 2013.” That year, Nokia’s handset division was sold for $7.2 billion, though the Finnish company’s networking business and patent pool remain active. The lawsuit meticulously details each alleged instance of patent infringement, citing Nokia marketing materials and technical diagrams of its cloud services. Amazon is not seeking a specific monetary amount but is asking for “adequate” compensation, attorneys’ fees, and an injunction to stop Nokia’s alleged patent violations.
Amazon challenges Nokia on cloud patents
This lawsuit is likely connected to a case that Nokia filed against Amazon last year concerning video streaming technology that Amazon and HP have allegedly been using without permission. According to anonymous sources familiar with the situation at Amazon, the company launched this legal action in response to Nokia’s previous lawsuits.
It is suggested that Amazon believes Nokia was demanding excessive licensing fees for its intellectual property, and hopes this latest legal move will prompt Nokia to settle on fair terms. Nokia has responded, stating, “We respect other companies’ intellectual property and expect others to do the same. We have just become aware of Amazon’s claims of patent infringement in an action they have filed in the Delaware District Court.
We will review these matters and defend ourselves vigorously in court.”
The outcome of this legal battle remains uncertain, but it underscores the competitive and often contentious nature of the tech industry’s cloud and networking sectors.
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