Nokia faces trade secrets suit over ‘smart pole’ tech
Finnish multinational is accused of pilfering secrets after a mooted collaboration failed to materialise | Plaintiffs demand compensation after Nokia sold smart poles to an Indian telecoms company, 'to support smart city initiatives'.
Two US telecommunications firms have sued Nokia for the alleged theft of their trade secrets covering wireless technology used in outdoor ‘smart poles’.
Project Management Resource Group (PMRG) and CitiSite developed a communication device called the ‘Pole Technology’, which enables wireless networks and conceals and ventilates equipment used in smart street poles.
The plaintiffs filed the complaint yesterday, August 14, in Delaware against four Nokia divisions: Nokia US (headquartered in Delaware), Nokia Finland, Nokia Corporation, and subsidiary John Does One Through Ten.
Early discussions
According to the lawsuit, CitiSite began discussions with the Finnish multinational in 2015 about a potential collaboration, with a view to Nokia incorporating CitiSite technology into its newly manufactured antenna towers.
These were to be deployed in “urban settings and temperate environments for aesthetically concealing antenna equipment and allowing unencumbered transmission of radio signals”, according to the suit.
CitiSite entered two non-disclosure agreements (NDAs) with Nokia—a mutual NDA with US Nokia in 2015, and a second one with Finland Nokia the following year. CitiSite also entered into a Teaming Agreement with Finland Nokia in 2016.
California-based CitiSite subsequently began to share trade secret information regarding its products, including its Pole Technology, with the two Nokia entities.
Communication towers
Nokia allegedly began to construct its own device, using the plaintiffs’ technology and trade secrets in Asia and possibly elsewhere, argue CitiSite and its affiliate PMRG.
This “would have greatly enhanced the value of Nokia’s communication tower products and enabled Nokia to increase both the profitability and volume of its sales”, argues the complaint.
As planned, CitiSite adapted the technology in question for Nokia to use in its products. However, Nokia allegedly ceased to communicate with CitiSite in August 2017, proceeding instead with a company in Asia, using CitiSite’s technology without consent.
In October 2018, Nokia began selling products that “effectively copied” CitiSite’s technology called ‘BSNL Smart Pole Nokia’ to Bharat Sanchar Nigam Limited (BSNL), an Indian public telecommunications company.
Nokia announced at the time that it had been selected by BSNL to power its ‘Smart Telecom Pole’ project, which provides connectivity and is integrated with a smart LED lighting system, CCTV cameras, digital billboards and environmental sensors.
“This smart pole solution has been designed and built in India to support the smart city initiatives which promote smarter, safer and more sustainable cities,” said Nokia in the press release.
Confidential material
According to this week’s lawsuit, Nokia sold the smart poles without informing or compensating CitiSite.
“Simply put, Nokia produced and sold communication towers as ‘Smart Pole’ [sic] using CitiSite’s confidential information without CitiSite’s knowledge,” say the plaintiffs, who say they discovered this almost two years later, when the first NDA expired and US Nokia failed to return the confidential material related to the technology.
The plaintiffs believe that Nokia will continue to use the technology at issue, and “will likely see a substantial increase in its market share in its ‘Smart Pole’ category as a result of its misuse of CitiSite’s confidential information”.
Smart cities
Smart poles are part of smart urban infrastructure in so-called ‘ smart cities’. As well as street lighting and signage, they provide connectivity for 5G and wifi hotspots, surveillance and traffic cameras.
Other applications include air quality and flood monitoring solutions, and charging points for electric vehicles and drones, including renewable energy generation. Some 11 million of them are expected to be installed globally by 2030.
Because CitiSite assigned its interests in its intellectual property to PMRG—which also provides engineering and project management services in wireless technology—the IP rights at issue currently belong to PMRG.
CitiSite retains its interests in the 2015 and 2016 NDAs, and is asserting breach of contract and related claims based on those contracts.
The complaint was filed at the US District Court for the District of Delaware. Attorneys for the plaintiffs are led by David Felice at Bailey Glasser. Attorneys for Nokia have not yet been named.
WIPR has contacted the plaintiffs' attorneys, and Nokia, for comment, without immediate response.
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