Nokia has filed lawsuits against Amazon for using their video-related technology in Amazon’s streaming services and devices. Similar actions have also been initiated against HP in the U.S. for the unauthorized use of Nokia’s patented video-related technology.
Amazon’s Infringement on Nokia’s Patents
Amazon Prime Video and Amazon’s streaming devices have violated multiple Nokia multimedia patents. These patents cover various aspects like video compression, content delivery, content recommendations, and hardware. These cases have been filed in the U.S., Germany, India, the UK, and the European Unified Patent Court.
Nokia’s Chief Licensing Officer, Arvin Patel, emphasized that litigation is not their first choice. However, they have been in discussions with Amazon and HP for years, and sometimes legal action becomes necessary when companies do not follow established rules. Nokia believes Amazon and HP significantly benefit from their multimedia innovations.
The Impact of OTT Streaming
The global OTT streaming market has seen tremendous growth, generating nearly $150 billion in revenue in 2022. This year, it is expected to exceed $170 billion, with estimates reaching $300 billion by 2027. However, there is a disconnect between those who invest in developing streaming technology and those who benefit the most.
Nokia’s Role in Video Technology
Nokia has been a pioneer in video technology since the early 1990s. They have contributed to the development of video codecs, enabling high-quality video streaming and conferences. Nokia’s inventions have reduced the required bitrate for video streaming while maintaining quality, benefitting a wide range of devices.
Nokia’s innovations extend beyond video codecs. They have developed features like screen optimization when switching between portrait and landscape video, as well as fast-forward and rewind functions. They are responsible for technologies that personalize content recommendations and possess extensive multimedia assets.
Compensation for Innovators
Nokia seeks compensation for the use of their inventions. The royalties collected will be reinvested in the development of next-generation multimedia technology, creating a cycle of innovation that benefits both innovators and consumers.
Commenting on legal action against Amazon, Arvin Patel, Chief Licensing Officer, New Segments at Nokia, said:
Litigation is not our primary option. Our preference is to establish amicable agreements with companies that depend on our technology, and we are open to constructive, good-faith negotiations.