Apple faces $862m bill for using chip technology without permission

Apple is facing a bill of up to $862 million in damages after a jury ruled that chip technology used in its iPhone 6 and 6 Plus violates a university’s patent. The company was told to pay up over its A7, A8 and A8X processors, which are found in some iPads as well as its iPhones. It used technology to improve processor efficiency which is covered by a patent owned by the University of Wisconsin-Madison’s licensing arm. Now, a jury in the U.S. has ruled that Apple used the technology without permission and must pay damages.

In any case, any fine for Apple relating to this case would not have a substantial or lasting impact on its earnings

Prof Loizos Heracleous of Warwick Business School

The case was brought by the Wisconsin Alumni Research Foundation, which also recently launched a separate action over the company’s newest chips - the A9 and A9X - used in the new iPhone 6s and 6s Plus, and the iPad Pro. Apple had denied infringing the patent, saying that it was invalid. It had tried to convince the US Patent and Trademark Office to review whether the patent was valid, but the request was rejected. WARF has previously taken legal action against Intel Corp, but the case was settled in 2009 on the eve of trial.

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