Apple will have to pay Caltech nearly $1.1 billion in damages for infringement of some patents belonging to the California Institute of Technology.
Bloomberg reports that the jury ruled against Apple and Broadcom. The two companies will have to pay a total of 1.1 billion dollars to Caltech. Specifically, Apple will have to pay $838 million, while Broadcom the remaining 270 million. Apple has already said that it will appeal to the verdict.
The jury had to decide whether or not Broadcom’s chips used patents belonging to Caltech. The lawsuit started in 2016, as Caltech claimed that WiFi chips made by Broadcom and used by Apple violated several patents. The lawsuit cited all Apple products: iPhone, iPad, Mac, iMac, Apple Watch, Apple TV, HomePod and even discontinued AirPort routers.
The patents concern coding systems that correct errors in data transmission used in the 802.11 Wi-Fi standard. Apple and Broadcom denied infringement of all patents and claimed that the California Institute of Technology was not entitled to receive any damages.
Unfortunately for Apple, the jury sided with Caltech, given that the patents were linked to elements “key to the connectivity of Apple products”. Caltech’s three patents at the center of the case concerned WiFi performance and speed balance based on factors such as heat, power and chip size.
How did the figure of $838 million come about? Caltech’s attorney William Price said the number is based on sales of over 598 million Apple devices that infringed patents in the United States.
The University’s compensation expert calculated a hypothetical royalty negotiation that would take place in 2010 when Broadcom started selling the offending Wi-Fi chips to Apple and spoke of a $1.40 per device fee. for Apple and 26 cents per device for Broadcom. The jury’s verdict followed these estimates.