Apple and Broadcom will have to face a new damages trial in their $1.1 billion patent case after a U.S. appeals court on Friday threw out a previous ruling. Apple and Broadcom will have to face a new damages trial in their $1.1 billion patent case after a U.S. appeals court on Friday threw out a previous ruling. The court said that the previous jury had not properly calculated damages.
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A U.S. appeals court on Friday threw out a jury verdict ordering Apple Inc and Broadcom Inc to pay $1.1 billion to the California Institute of Technology for infringing its Wi-Fi technology patents. The court ordered a new trial on damages.
The U.S. Court of Appeals for the Federal Circuit said the January 2020 award by the federal jury in Los Angeles, one of the largest ever in patent cases, was "factually unsupported."
The court upheld the jury's findings that Apple and Broadcom infringed two Caltech patents. It also ordered a new trial on whether they infringed a third patent.
In May 2016, Caltech filed a lawsuit against Apple and Broadcom, alleging that the companies' use of Broadcom chips in millions of devices infringed its data-transmission patents.
The jury had ordered Apple to pay Caltech $837.8 million and Broadcom to pay an additional $270.2 million in damages.
Caltech spokeswoman Shayna Chabner said the Pasadena, California-based school was confident that the value of its patents would be "justified" at a new damages trial.
Apple and Broadcom did not immediately respond to requests for comment.
Apple is a major purchaser of Broadcom chips, and in January 2020 reached a $15 billion supply agreement that ends in 2023. Broadcom has estimated that a fifth of its revenue comes from Apple.
Caltech's damages model had been based on an argument that the school could have simultaneously negotiated a license with Apple for devices containing Broadcom chips, and a license with Broadcom for chips used in other products.
Circuit Judge Richard Linn rejected that theory in his writing for the appeals court.
Broadcom and Apple are separate infringers, which does not support treating the same chips differently at different stages in the supply chain, according to Linn. Caltech's two-tier damages theory is legally unsupportable on this record.
Caltech has also sued Microsoft Corp (MSFT.O), Samsung Electronics Co (005930.KS), Dell Technologies Inc (DELL.N) and HP Inc (HPQ.N) for alleged infringement of the same patents. Those cases are still pending.
The U.S. Court of Appeals for the Federal Circuit said the January 2020 award by the federal jury in Los Angeles, one of the largest ever in patent cases, was "factually unsupported."
The court upheld the jury's findings that Apple and Broadcom infringed two Caltech patents. It also ordered a new trial on whether they infringed a third patent.
In May 2016, Caltech filed a lawsuit against Apple and Broadcom, alleging that the companies' use of Broadcom chips in millions of devices infringed its data-transmission patents.
The jury had ordered Apple to pay Caltech $837.8 million and Broadcom to pay an additional $270.2 million in damages.
Caltech spokeswoman Shayna Chabner said the Pasadena, California-based school was confident that the value of its patents would be "justified" at a new damages trial.
Apple and Broadcom did not immediately respond to requests for comment.
Apple is a major purchaser of Broadcom chips, and in January 2020 reached a $15 billion supply agreement that ends in 2023. Broadcom has estimated that a fifth of its revenue comes from Apple.
Caltech's damages model had been based on an argument that the school could have simultaneously negotiated a license with Apple for devices containing Broadcom chips, and a license with Broadcom for chips used in other products.
Circuit Judge Richard Linn rejected that theory in his writing for the appeals court.
Broadcom and Apple are separate infringers, which does not support treating the same chips differently at different stages in the supply chain, according to Linn. Caltech's two-tier damages theory is legally unsupportable on this record.
Caltech has also sued Microsoft Corp (MSFT.O), Samsung Electronics Co (005930.KS), Dell Technologies Inc (DELL.N) and HP Inc (HPQ.N) for alleged infringement of the same patents. Those cases are still pending.
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