Apple and Broadcom to pay billion dollar fine for patent infringement

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A bummer for Apple, and indirectly for Broadcom. The two tech giants together have to cough up 1.1 billion dollars (about 994 million euros) for violating multiple patents from the California Institute of Technology.

Caltech started a case against Apple in 2016 after it believed that unauthorised methods were being used to send digital data. Caltech is alleged to have four patents to its name that are used by Apple, so hundreds of millions of the tech giant’s products are infringing on the patent.

Broadcom is dragged into the process as they create the chips used for the WiFi connection. The chip manufacturer has to pay the smaller part of the fine, 270 million dollars (about 244 million euros). Apple has to pay the majority, set by the jury at 1.40 dollars per device (1,26 euros). Together the costs would be about 837 million dollars (756 million euros).

Appeal

Whereas Caltech, immediately after the verdict, expressed its satisfaction with the fact that the created technology is guaranteed, Apple opts for the attack: the tech giant goes on appeal. According to the manufacturer, Apple is a party unintentionally involved in the patent infringement since it ‘only buys the chips from Broadcom’.

The ruling to Apple’s disadvantage is the second one in a short period of time. A few days ago, the court already ruled in favour of Wi-LAN in a court case that also concerned the use of technology for which a patent was held and for which no payment had been made. In the first instance, Wi-LAN claimed almost 150 million dollars, the court ruled that 85 million covered the damages sufficiently.