Thursday, January 30th 2020
The Case is Patent: Apple, Broadcom Ordered to Pay $1.1 billion to CalTech
There is a lot to say regarding patent applications and their defense, and the devious ways these can be used as a way to both stifle innovation, competition, and to leech other companies' funds with what is usually described as "patent troll" behavior. Being a seat of technological innovation, The California Institute of Technology (CalTech) registers patents as results of their attachés' work - some of these see the light of day as actual products, but more often than not, the patent rights are used as a way for the institute to receive funds from those that would license their intellectual property.
After entering a legal battle with Apple and Broadcom back in 2016, CalTech has now had its accusation of patent infringement against both companies come to a close, with the jury deciding in favor of the university. The accusation was of both companies deploying WiFi chips which were based on Caltech's patent designs - WiFi chips that were then shipped within millions of iPhones, iPads and MacBooks. As a result, both Apple and Broadcom were ordered to pay a total of $1.1 billion in compensation, with Apple taking the brunt of the decision ($837.8 million) and Broadcom coming in with a thinner slice at $270.2.Both Apple and Broadcom have come forward saying they intend to appeal against the decision, with Apple using the tactic of shirking off responsibility. According to the company, they are "an indirect downstream party" to the patent-infringing WiFi modules, which means Apple believes they have no responsibility as to any patent infringements that were included in the design of the chips it ordered from Broadcom. Stock valuation of both Apple and Broadcom declined after the jury's decision was made public.
As for CalTech, the scholl said in a statement that they 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."
After entering a legal battle with Apple and Broadcom back in 2016, CalTech has now had its accusation of patent infringement against both companies come to a close, with the jury deciding in favor of the university. The accusation was of both companies deploying WiFi chips which were based on Caltech's patent designs - WiFi chips that were then shipped within millions of iPhones, iPads and MacBooks. As a result, both Apple and Broadcom were ordered to pay a total of $1.1 billion in compensation, with Apple taking the brunt of the decision ($837.8 million) and Broadcom coming in with a thinner slice at $270.2.Both Apple and Broadcom have come forward saying they intend to appeal against the decision, with Apple using the tactic of shirking off responsibility. According to the company, they are "an indirect downstream party" to the patent-infringing WiFi modules, which means Apple believes they have no responsibility as to any patent infringements that were included in the design of the chips it ordered from Broadcom. Stock valuation of both Apple and Broadcom declined after the jury's decision was made public.
As for CalTech, the scholl said in a statement that they 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."