Apple loses patent lawsuit filed by University of Wisconsin-Madison's licensing arm over chip technology - Silicon Valley Business Journal

 

Gina Hall Contributor

 

 

A jury has decided Apple used the chip technology of the University of… more

 

Apple may have to pay up to $862 million in damages to the University of Wisconsin-Madison’s licensing arm after a jury found on Tuesday that the Cupertino company used chip technology without permission.

The Madison, Wisconsin, jury noted that the university licensing arm’s patent, which improves processor efficiency, is valid, according to Reuters. The case will move forward to determine how much Apple must pay for infringing on the patent.

 

A jury has decided Apple used the chip technology of the University of… more

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So what does this mean for Apple?

The lawsuit
The Wisconsin Alumni Research Foundation (WARF) brought suit against Apple in January 2014 for patent infringement on a 1998 patent for improving chip efficiency.

The jury considered whether Apple's A7, A8 and A8X processors found in the iPhone 5s, 6, 6 Plus and the iPad violated the patent. Apple denied infringement and argued the patent was invalid, the report said.

Moving forward
U.S. District Judge William Conley ruled that Apple could be liable for up to $862.4 million in damages. How much of that will Apple pay? The trial will move forward in three phases: liability, damages, and a decision over whether Apple infringed the patent willfully. If Apple knowingly infringed on the patent, the penalties will be more severe.

Additional Apple suits
It doesn’t look like this case will be the end of Apple’s run-in with the university. Last month, WARF launched another lawsuit against Apple. The second suit is aimed at Apple’s latest chips, the A9 and A9X used in the iPhone 6S, 6S Plus and the iPad Pro. WARF sued Intel Corp. in 2008 for violating the same patent, but the case was settled in 2009 prior to trial.

Apple has been involved in several patent suits this year, sometimes coming out as the loser, other times emerging on top.

In early 2015, Swedish telecom company Ericsson sued Apple for patent infringement, a move that could halt sales of the popular Apple products in the U.S., although it likely wouldn’t come to such a drastic scenario. If Ericsson wins the dispute, Apple would likely have to pay Ericsson between $250 million and $750 million in fees annually, based on estimates of handset sales and royalty payments per phone, according to Reuters, citing of analysts familiar with the situation.

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