Back in 2016, CalTech (California Institute of Technology) filed a lawsuit in Federal Court in Los Angeles against Broadcom for infringing wifi technology patents and also alleged Apple for incorporating infringed Broadcom’s WiFi chips into its devices in large numbers.
After years of a long battle between these organizations, a Los Angeles jury on Wednesday gave an order to both Broadcom and Apple to pay $1.1 billion combinely to the California Institute of Technology.
The reports say that both Apple and Broadcom were ordered to pay a combine patent verdict amounting to $1.1 billion, which Apple will be paying $837.8 million, and the rest $270.2 million will go for Broadcom.
This patent case for infringement of WiFi technology is considered to be one of the largest patent verdicts in history by law. CalTech had sued both Apple and Broadcom back in 2016. It alleged Apple for using Broadcom components that infringed on its patents related to wireless data transmissions and hitting high-profit revenues in billions of dollars by selling iPhones and other products that consolidate this technology.
That’s the reason why jurors have hit Apple with a large amount in the patent verdict as Broadcom was supplying the chips in large numbers to many Apple products, which they found as high-revenue profit generation by Apple using CalTech’s technology.
CalTech said in a statement:
“We are pleased the jury found that Apple and Broadcom infringed Caltech patents. As a non-profit institution of higher education, Caltech is committed to protecting its intellectual property in furtherance of its mission to expand human knowledge and benefit society through research integrated with education.”
Further, both Apple and Broadcom decided to appeal the verdict.
Broadcom, in response to an AFP inquiry, said, “While we thank the members of the jury for their service, we disagree with the factual and legal bases for the verdict and intend to appeal.”
In court documents, Apple and Broadcom had said Caltech’s claims “are based solely on the incorporation of allegedly infringing Broadcom chips in Apple’s iPhone, Mac, and other devices.”
“Broadcom manufactures the accused chips, while Apple is merely an indirect downstream party whose products incorporate the accused chips,” court filings argued.
Broadcom was the main target of the lawsuit, but Apple was also named as it is one of Broadcom’s biggest customers.
– says Economic Times
Additionally, Rob Enderle, an analyst at Enderle Group, added his statement saying, “Caltech will go down the list of Broadcom customers and look for out-of-court settlements with anyone who used the compromised technology. I think it’s a case where, after a period of time, people age out or forget that there are significant penalties for this stuff.”