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Apple Faces $862 Million Fine in Patent Dispute

Things are not looking very well for Apple. The famous company could be facing fines of no less than $862 million in a patent dispute. The case is related to the chips that Apple uses for its iPhones and iPads.

The accusations were initially brought by the University of Wisconsin, which claimed that the company infringed a 1998 patent it held.

A federal judge ruled that the company was liable for infringing the University's patent, thus, Apple might be forced to pay millions in damages.

The processors, A7, A8 and A8X, disputed in the case were used for the iPhone 5S, iPhone 6 and iPhone 6 Plus. They were also used in various iPad models.

The case streams from a lawsuit filed against Apple back in 2014. The Wisconsin Alumni Research Foundation, part of the University of Wisconsin, sought $862 million in damages for patent infringement.

Apple Fine patent
Apple disputed the patent and tried to convince the US Patent and Trademark Office to review it.
The tech giant claimed that since the patent was invalid, they could have not infringed it. However, the patent was declared valid and Apple was found guilty of infringing it. 

The jury has not yet decided on the amount of damages that should be granted to the University, but, even if they will approve the sum sought by the plaintiff, this would be a small issue for Apple, which is known to have earnings of $200 billion.

Well, Apple is not the only company which has infringed the patent filed in 1998 for technology developed by University researchers and which could enhance the efficiency of computer processors. Intel has actually been in a similar situation.

The company was sued back in 2008, on accusations of infringing this patent. However, the main difference is that in Intel's case the lawsuit was settled out of court, so the company and the University did not reach trial. According to court documents, Intel agreed to pay $110 million in order to settle the case.

How much Apple will finally pay is yet to find out. 
Commonly, such sums are reduced during appeals, although the sum could also increase, depending on further findings.

Moreover, Apple could deal even with more issues, as a second lawsuit was filed over the same issue. The University claimed that the company's newest processors, A9 and A9X, which are used in iPhone 6S and iPhone 6S Plus, were also infringing its patents.
Apple Faces $862 Million Fine in Patent Dispute Reviewed by John Colston on 12:24 PM Rating: 5
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