Apple Ordered to Pay $533 Million for Infringing Patents

Apple Ordered to Pay $533 Million for Infringing Patents

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Apple has been ordered to pay $532.9 million after a federal jury found iTunes infringed three patents held by Smartflash LLC, reports Bloomberg.

Closely held Smartflash LLC, which claimed that Apple infringed three patents, was seeking $852 million in damages, while Apple said it was worth $4.5 million at most. A federal jury in Tyler, Texas, where Smartflash is based, on Tuesday rejected Apple’s arguments that it didn’t use the inventions and that the patents were invalid.

The patents deal with digital rights management, data storage, and managing access through payment systems.

“Smartflash makes no products, has no employees, creates no jobs, has no U.S. presence, and is exploiting our patent system to seek royalties for technology Apple invented,” said Kristin Huguet, an Apple spokeswoman. “We refused to pay off this company for the ideas our employees spent years innovating and unfortunately we have been left with no choice but to take this fight up through the court system.”

“Apple doesn’t respect Smartflash’s inventions,” the company’s lawyer, John Ward of Ward & Smith in Longview, Texas, told the jury. “Not a single witness could be bothered with reviewing the patent.”

Smartflash had been seeking $852 million in damages. It claimed that Apple intentionally infringed the patents, partly because one Apple executive had been briefed on the technology over a decade ago.

The company has also sued Samsung, Google, and Amazon for patent infringement.

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Apple Ordered to Pay $533 Million for Infringing Patents

Kapnkirk24 - February 26, 2015 at 12:23am
Unless you posted this from a free-range organic leaf smartphone or laptop, shut up with that argument. Everyone steals from everybody. Everybody charges too much for tech they didn't actually invent. Enjoy the products and services they provide or be quiet. That's your job as a consumer. You consume sh!t.. If you hate a company that acquires intellectual property for profit, you hate ALL companies. This article represents our (the USA's) legal system which as a whole is not perfect, however does a great job of legitimately maintaining balance & unbias. (Of course not ALWAYS, but high level, it does). The US is built on who did it first, who wrote it in Stone, And who has the best argument that day. Opinions of right & wrong rarely have a say in business because FEELINGS aren't fit for the workplace. It all comes down to what's legal, what's not. Period.
Dave Vangina - February 26, 2015 at 12:49am
"your job as a consumer" ... shut the fcuk up, consumer has no obligation to your company, fact is consumer is ultimately your boss who can fire you any time and can tell you what to do and how, talk to retards from Redmonds who recently learned that trying to sell windows 8
Grave hole - February 26, 2015 at 12:56am
"Consumer has no obligation to your company" did he say he owned a company? Besides who asked you anyway?
Ren Deluded - February 26, 2015 at 12:01am
$533 Million is nothing to Apple. They profit is in billion by avoiding tax in EU. In UK they only pay 1% tax compare to small business who pay 20%. £533 will be shoulder by consumer from their overprice innovative products that been copied from other companies and stolen from individuals.
Dave Vangina - February 26, 2015 at 12:15am
it is ok actually not to pay taxes in EU as most taxes collected there fund Putin army thru payments for nat gas. AFAIK Europeans are aware and agreed to this in new trade agreement. In return European companies have a lot tax incentives in US. Avoiding taxes in US is way more dangerous.
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