Picsel hires US lawyers to take on Apple over iPhone

Picsel Technologies, which employs 250 staff at its headquarters in Glasgow, has taken on Nixon Peabody, a Global 100 legal outfit, to represent the firm in the US courts.

Last December, Nixon Peabody tripled the size of its Valley office at Palo Alto, California with 13 new attorneys, specifically to handle technology legal disputes. Managing partner James C Chapman says the practice represents a "strong offering" to local and foreign companies alike.

Picsel claims Apple has infringed a key patent involving its on-screen browser software technology, directly connected to the flagship iPhone and iPod products.

At stake is compensation likely to run into millions of dollars. Picsel's new global chief operating officer Ted Katagi is marking his first business quarter by setting up what promises to be a 'David and Goliath' court scenario. Picsel's 2007 turnover is reported at 32.5m, whilst Apple's annual revenue is more than $30bn.

One industry source describes Katagi as a "no-nonsense ex-Berkeley and Harvard tech heavyweight".

Before moving to his new job Katagi held senior executive positions at Fidelity Investments, Vodafone Group, Japan Telecom and Verizon Wireless. Picsel is reported to be seeking a jury trial, unspecified damages and an order to stop Apple's sales of the iPhone, according to a complaint filed in the federal court at Wilmington, Delaware.

The suit maintains the firm has invested millions of dollars towards developing a 2006 patent involving the generation of digital graphics but that Apple has conducted an unauthorised use of its invention.

The court will be asked to order Apple to compensate Picsel for devices containing the mobile browsing "key component" already sold.

Nixon Peabody said in a statement: "In this lawsuit… the mobile platform provider whose technology has shipped more than 250 million units worldwide, alleges Apple's iPhone infringes Picsel's rapid redraw patent, which enhances the user experience while navigating through on-screen content."

Picsel's co-founder Imran Khand, while not commenting directly on the court case, describes his firm as achieving "the ability to deliver any digital content, on any device – something which is completely unique for the mobile market."

He adds that his firm's technology consists of "absolutely ground-breaking technology and we are continuing to secure deals with the world's foremost mobile technology companies."

Along with Apple, Picsel's software can be found in other mobile products by Motorola, KDDI, Nokia, NTT, DoCoMo, Samsung, Sony Ericsson and Sharp.

Picsel will need all of its commercial and legal acumen to hand to take on Apple. When it comes to litigation, the company is renowned for playing the long game.

One particular court case has been in and out of court since 1978 when Apple Corps, the record label and holding company which was founded by the Beatles, filed a suit against Apple Computer for trademark infringement.

The case was thought to be settled in 1981 with an undisclosed amount being paid to Apple Corps, later revealed to be a reported $80m.

The dispute surfaced again in 2003, this time Apple Inc emerging the winner, and it now owns all trademarks related to "Apple" but licenses some back to Apple Corps.