Analysts: Apple could face US$1 billion in fees to Nokia if it loses patent suit

Reuters is reporting that some industry analysts estimate that Apple could be forced to pay Nokia upwards of US$1 billion if it loses the patent infringement suit that Nokia filed yesterday in a Delaware District Court. The analysts told Reuters that patent royalty fees work out to roughly 15 percent of the retail cost of a 3G cell phone, with 2G phones requiring a smaller percentage in patent royalties.

The major 3G patents are held by Qualcomm, Motorola, Nokia, and Ericsson. Most of the major manufacturers enjoy cross-licensing agreements that allow them to make use of each other's patents, avoiding at least part of the royalty burden. Ericsson, for its part, told Reuters that it already has a licensing agreement with Apple for its iPhone model line.