Highlights

• Prolonged legal battle between Apple, Broadcom, and Caltech ends in settlement.
• Controversy rooted in alleged infringements on advanced Wi-Fi communication patents.
• Initial penalties for Apple and Broadcom combined were set at $1.1 billion.
• US Court of Appeals found original damage calculations to be “legally unsupportable.”

Apple, alongside its Wi-Fi chip supplier Broadcom, has successfully settled, as per Reuters, a prolonged legal tussle with the California Institute of Technology (Caltech).

This seven-year confrontation revolved around alleged infringements on Wi-Fi communication patents held by Caltech.

Back in 2016, Caltech alleged that both Apple and Broadcom had used their patented Wi-Fi technologies in multiple products, including iPhones, iPads, Macs, and Apple Watches.

Specifically, these patents encompassed advanced encoding and decoding systems devised to enhance data transmission speeds and overall performance.

Apple’s initial response was to challenge these claims, aiming to render the patents invalid. However, their efforts were in vain.
By 2020, the verdict was clear: Apple and Broadcom had breached Caltech’s intellectual property rights.

The financial implications were hefty; Apple faced a whopping $838 million penalty, whereas Broadcom was slated to part with $270 million.

The combined penalty of $1.1 billion was poised to be among the most substantial patent-related payouts in the annals of US history.

Yet, the story took another turn.
On appeal, the US Court of Appeals for the Federal Circuit held that while both companies had indeed violated Caltech’s patents, the original damage calculation was flawed and “legally unsupportable.”

This led to the calling of a fresh trial to reassess the compensatory amounts.

However, keen to avoid another lengthy court battle, the trio – Apple, Broadcom, and Caltech – hinted in August at an impending settlement.

Fast forward to the present, and the legal dust has settled, marking an end to this marathon patent dispute.

FAQs

When did Caltech first sue Apple and Broadcom?

Caltech initiated the lawsuit against both companies in 2016 over Wi-Fi communication patents.

Which Apple products were targeted in the lawsuit?

iPhones, iPads, Macs, and Apple Watches were among the devices mentioned in the suit.

How much were Apple and Broadcom initially ordered to pay?

Apple was fined $838 million, while Broadcom was penalized with $270 million.

Was the original fine upheld by the appeals court?

No, the US Court of Appeals found the initial damage assessment to be flawed and called for a new trial.

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