Apple demands $300 million after patent violation
Apple frustrated by judgment and going to appeal: Such cases stifle innovation and harm consumers
Apple has received orders to pay $308.5 million to PMC after violating a patent related to digital rights management DRM, Bloomberg reported.
A federal jury in Texas determined that the tech giant violated PMC’s patent after a five-day trial.
PMC sued Apple for violating its patent using technology, including FairPlay, which is used to distribute encrypted content from iTunes, App Store and Apple Music apps.
The problem began in 2016, when PMC sued Apple for violating seven patents, but the case took years to make its way to trial.
Apple successfully challenged the patent in an appeal to the U.S. Board of Appeals and Patent Trial, which later invalidated some intellectual property claims.
But PMC appealed to the court last year, the verdict was overturned by the Court of Appeal in 2020, and the case was sent to trial.
Apple said it is frustrated with the ruling and is going to appeal, adding: Such cases, brought by companies that do not manufacture or sell any products, stifle innovation and harm consumers.
According to the expert invited by PMC, apple’s total equity worth $240 million, but the jury decided to apply the current property rights rate of $308.5 million.
Current IP is usually calculated on the basis of unit sales or service sharing.
YouTube and Google won a different patent trial with PMC in November, and the PMC case against Netflix is still pending in New York.
PMC is a non-practicing entity, which means that the company only submits patents but does not use it, and PMC has dozens of patents, which generate revenue through patent litigation.
This is not the first issue, nor will it be the last issue Apple may face.