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Just as Apple prepares to introduce the iPhone in China, they were hit with a lawsuit from Nokia alleging patent infringement. The suit pits the world’s largest manufacturer of cellphones against the maker of the most popular smartphone in history.  Nokia says Apple refused to enter into a licensing agreement, unlike the 40 other cellphone makers who use Nokia’s technology.

“By refusing to agree to appropriate terms for Nokia’s intellectual property, Apple is attempting to get a free ride on the back of Nokia’s innovation,” said Ilkka Rahnasto, Nokia’s vice president for legal and intellectual property.

The technology is multi-faceted and includes wireless data, security, encryption, and speech coding.  Nokia says it doesn’t want to stop iPhone sales, it simply wants to be compensated for the use of its patents.

Just last year Nokia reached a settlement with Qualcomm which required it to pay over $2 billion and arrange future royalties for use of Qualcomm’s 3G related technology.  The companies say they plan to develop phones and mobile devices together.  Apple has refused comment on the lawsuit.

Read [Wall Street Journal]