Apple, Broadcom Must Pay $1.1B in Wi-Fi Chip Patent Lawsuit

Apple and Broadcom lost a patent lawsuit this week and are now required to pay the California Institute of Technology (Caltech) $1.1 billion.

As Reuters reports, the lawsuit was originally filed in federal court back in 2016 by Caltech against chip designer Broadcom as well as one of its biggest customers: Apple.

Caltech alleged that Broadcom's Wi-Fi chips, which are used in iPhones, infringed on the institute's data transmission patents.

A jury agreed and ruled in Caltech's favor.

Speaking of the verdict, Caltech said in a statement, "We are pleased the jury found that Apple and Broadcom infringed Caltech patents ...

As a non-profit institution of higher education, Caltech is committed to protecting its intellectual property in furtherance of its mission to expand human knowledge and benefit society through research integrated with education."

The $1.1 billion awarded to Caltech is split, with Apple required to pay $837.8 million while Broadcom must pay $270.2 million.

However, Caltech will be waiting on the money for quite a while yet.

Both Apple and Broadcom intend to appeal the decision.

Apple hasn't commented further, but stated during court proceedings that it was just an "indirect downstream party" for these chips.

Broadcom released a statement saying, "While we thank the members of the jury for their service, we disagree with the factual and legal bases for the verdict and intend to appeal."

What's surprising here is that Apple ended up paying the bulk of the money awarded when you consider Broadcom is the chip designer and manufacturer.

It certainly acts as a reminder of how much influence Apple holds over the design of the chips it orders from its partners and will clearly have other phone manufacturers checking to see if they also rely on Wi-Fi chips that may also infringe Caltech's patents.

It's currently unknown if Caltech plans to start patent cases against other phone manufacturers or Broadcom chip customers.

Apple and Broadcom lost a patent lawsuit this week and are now required to pay the California Institute of Technology (Caltech) $1.1 billion.

As Reuters reports, the lawsuit was originally filed in federal court back in 2016 by Caltech against chip designer Broadcom as well as one of its biggest customers: Apple.

Caltech alleged that Broadcom's Wi-Fi chips, which are used in iPhones, infringed on the institute's data transmission patents.

A jury agreed and ruled in Caltech's favor.

Speaking of the verdict, Caltech said in a statement, "We are pleased the jury found that Apple and Broadcom infringed Caltech patents ...

As a non-profit institution of higher education, Caltech is committed to protecting its intellectual property in furtherance of its mission to expand human knowledge and benefit society through research integrated with education."

The $1.1 billion awarded to Caltech is split, with Apple required to pay $837.8 million while Broadcom must pay $270.2 million.

However, Caltech will be waiting on the money for quite a while yet.

Both Apple and Broadcom intend to appeal the decision.

Apple hasn't commented further, but stated during court proceedings that it was just an "indirect downstream party" for these chips.

Broadcom released a statement saying, "While we thank the members of the jury for their service, we disagree with the factual and legal bases for the verdict and intend to appeal."

What's surprising here is that Apple ended up paying the bulk of the money awarded when you consider Broadcom is the chip designer and manufacturer.

It certainly acts as a reminder of how much influence Apple holds over the design of the chips it orders from its partners and will clearly have other phone manufacturers checking to see if they also rely on Wi-Fi chips that may also infringe Caltech's patents.

It's currently unknown if Caltech plans to start patent cases against other phone manufacturers or Broadcom chip customers.