Apple told to pay US$308.5 mil for patent infringement

Apple told to pay US$308.5 mil for patent infringement

The company, disappointed with the ruling, says it would appeal as cases like this stifle innovation.

TEXAS:
Apple must pay US$308.5 million to closely held Personalized Media Communications after a federal jury in Marshall, Texas, decided on Friday that the tech giant infringed a patent related to digital rights management.

Personalized Media had sued claiming Apple infringed its patent with technology including FairPlay, which is used for the distribution of encrypted content from its iTunes, App Store and Apple Music applications.

One expert from Sugar Land, Texas-based Personalized Media had calculated Apple owed US$240 million in royalties. After a five-day trial, the jurors in Texas ordered Apple to pay a running royalty, which is generally dependent on the level of sales or usage.

Apple said it was disappointed with the ruling and would appeal.

“Cases like this, brought by companies that don’t make or sell any products, stifle innovation and ultimately harm consumers,” the company said in an emailed statement.

The lawsuit was originally filed in 2015, but Apple challenged the validity of the patent at the Patent Trial and Appeal Board. A US appeals court last year reversed the board’s decision that certain patent claims were invalid, thus reviving the case for trial.

US District Judge Rodney Gilstrap last week also adopted a magistrate’s recommendation denying Apple’s request to find the patent invalid.

Google and its YouTube service won a patent trial lodged by Personalized Media in November over different patents.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.