A US jury has awarded the California Institute of Technology $1.1 billion related to its patent case against Broadcom and Apple. The decision made on Wednesday effectively orders both companies to pay CalTech the amount for their infringement of its patents from 2010 to 2017.
The case against both companies was originally filed in Los Angeles, California in 2016. The patents that were allegedly infringed involved the California-based research university's data transmission technology, which was used on Broadcom Wi-Fi chips. Apple used Broadcom's chips on its various products, including its iPhones, Macs, and iPads.
The Jury's verdict ordered Apple to pay CalTech $837.8 million and Broadcom to pay the university $270.2 million. CalTech issued a statement immediately after the decision, stating that it was pleased with the outcome. CalTech added that it is committed to protecting its intellectual property and its mission to expand human knowledge through its research and technologies.
Following the decision, Broadcom also released a statement mentioning that it completely disagrees with the jury's decision. The company stated that there were no factual and legal bases for the decision, adding that it would appeal the decision.
Meanwhile, Apple also released its own statement, explaining that it should have not been involved in the lawsuit because it merely purchased Broadcom's chips "off the shelf" just like other smartphone manufacturers. Apple added that it was "merely an indirect downstream party" and was not privy to Broadcom's infringement of CalTech's technology. Apple confirmed that it will also be appealing the decision.
Apple is currently one of Broadcom's largest buyers. Chip sales to the Cupertino-based giant accounted for about 20 percent of Broadcom's total sales for its fiscal 2019 year. Just a week ago, Broadcom announced during its annual financial earnings call that it had signed a new deal with Apple to supply it with various wireless components estimated to be worth around $15 billion over the next few years.
The verdict against Apple and Broadcom is a major milestone for the patent industry. Nearly a decade ago, Apple was at the winning side of a patent infringement case, where the company was awarded $1 billion for its case against Samsung. Apple alleged that Samsung had copied its iPhone's design.
A jury from a 2012 trail found Samsung guilty and ordered it to immediately pay Apple for infringing its intellectual property. Both companies finally settled their dispute in 2018 after several appeals and trails. The exact settlement amount was however not disclosed.
