Apple ordered to pay $532.9M as jury finds it guilty of patent infringement
In a ruling late Tuesday night, Apple Inc. was ordered to pay $532.9 million after a Texas federal jury found it guilty of patent infringement. Patent licensing firm Smartflash LLC alleged that the iPhone maker’s iTunes software utilized technology it holds three patents for.
The final amount Apple was ordered to pay is roughly two-thirds of the original $852 million Smartflash asked for in their suit.
It took the jury eight hours to reach the conclusion that Apple had used Smartflash’s patents with consent and had done so deliberately.
Apple said it would appeal the ruling and called for reform in the patent system to prevent companies who do not manufacture products to file suit.
“Smartflash makes no products, has no employees, creates no jobs, has no U.S. presence, and is exploiting our patent system to seek royalties for technology Apple invented,” said Kristin Huguet, an Apple spokeswoman. “We refused to pay off this company for the ideas our employees spent years innovating and unfortunately we have been left with no choice but to take this fight up through the court system.”
Smartflash filed the lawsuit against Apple in May 2013, alleging that Apple’s iTunes software infringed three of its patents associated with accessing and storing downloaded songs, videos and games. Smartflash specifically claimed that iTunes used its inventions in iOS applications and games like Game Circus LLC’s Coin Dozer and 4 Pics 1 Movie.
“Smartflash is very happy with the jury’s verdict, which recognizes Apple’s longstanding willful infringement,” Brad Caldwell, a lawyer for Smartflash, told Reuters.
Apple’s efforts to avoid a trial amounted to nothing when U.S. District Judge Rodney Gilstrap ruled earlier this month that Smartflash had a valid case and that its technology was covered by the patents in question.
Apple claimed that previously patented inventions covered the same technology Smartflash was claiming in their patents, but ultimately failed to convince the jury of its case.
In its suit Smartflash claimed that, back in 2000, Patrick Racz, the co-inventor of the patents in question, had met with Augustin Farrugia and other executives of a company now known as Gemalto SA, a European SIM card manufacturer. Subsequently Farrugia moved to Apple where he is now a senior director.
Apple is not Smartflash’s only target. The company is also suing Samsung Electronics Co Ltd, HTC Corp and Google Inc. for patent infringement.
photo credit: Steve Jobs – 1955-2011 via photopin (license)
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