Apple to pay $838M for infringing CalTech Wi-Fi patents

    (Image Credit: TechRistic)

    Apple to pay $838M for infringing CalTech Wi-Fi patents

    Apple and Broadcom was found contravening California Institute of Technology patents by a federal jury on Wednesday, awarding the university $1.1 billion to be paid by the two tech companies.

    California jury decided both company contravened on patents covering Wi-Fi technology and slapped them with massive monetary penalties based on would-be royalties, in less than five hours of deliberations, according to in-court reports from Law360.

    The iPhone, iPad, Mac, Apple Watch and other products 2010 hypothetical licensing deal was argued by CalTech’s lawyers, would have brought in some $1.40 per device from Apple and 26 cents each from Broadcom. The calculation was adopted by the jury to level an $838 million fine for Apple and accompanying $270 million fine for Broadcom.

    The university claiming violation of four patents related to IRA/LDPC encoding and decoding technology, and already filed suit in 2016. As it applies to components used in Apple’s devices, the IP covers chips supporting 802.11n and 802.11ac wireless technologies.

    Apple to pay $838M for infringing CalTech Wi-Fi patents

    For its part, Apple claimed the Wi-Fi use was a common chips supplied by Broadcom. As it did not develop proprietary encoding and decoding solutions that might infringe on CalTech’s IP, the company was “merely an indirect downstream party” and should not be held liable for wrongdoing, Apple argued. The argument apparently fell flat.

    “We are pleased the jury found that Apple and Broadcom infringed Caltech patents,” CalTech said in a statement to Reuters. “As a non-profit institution of higher education, Caltech is committed to safeguarding its intellectual property in furtherance of its mission to expand human knowledge and benefit society through research integrated with education.”

    Apple said it will appeal the ruling.

    Read Also: iPhone SE2 and iPhone 9 production likely to be affected by Coronavirus spread

    Apple and Broadcom are longtime partners and last week inked a pair of multi-year agreements for the supply of wireless components bound for iPhone devices.

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