Apple and Broadcom Win in New Judgment That Charges $1.1 Billion for Patent Infringement

In a judgment in a patent use case, Apple and Brodcom were exonerated by a US appeals court, which rejected the payment of $1.1 billion in damages to the California Institute of Technology (Caltech ). The suit is about a possible use of WiFi technology without prior authorization. On Friday (4), the judges ruled that the damages were unsustainable and ordered a new trial on the grounds that the companies infringed two Caltech patents.

Technologies used in iPhones, Apple Watches and iPads

Caltech's lawsuit against Apple and Broadcom began in 2016 and the prosecution's main argument is that the companies infringed on data transmission patents.

Millions of iPhones, iPads and Apple Watches use Broadcom chips, including a 2023 supply contract worth $15 billion. About 20% of Broadcom's revenue comes from sales made with Apple.

broadcom chips
About 20% of Broadcom's chip production goes to Apple; both companies are partners in a $15 billion contract that expires in 2023. Image: Shutterstock

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Device License

Caltech claimed the companies should have negotiated a license for devices containing Broadcom chips, but Judge Richard Linn rejected that theory. According to him, Caltech's two-tier damage theory is legally untenable.

“The mere fact that Broadcom and Apple are separate infringers alone does not support treating the same chips differently at different stages of the supply chain,” Linn wrote.

Caltech, based in Pasadena, California, also sued Microsoft Corp, Samsung Electronics Co, Dell Technologies Inc and HP Inc for alleged infringement of the same patents. All cases are still pending.

Via: Reuters

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The post Apple and Broadcom Win in New Judgment That Charges $1.1 Billion for Patent Breach appeared first on Olhar Digital.

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