Apple Inc. (AAPL) Bets On Overturning Smartflash Verdict

As far as Apple Inc. (NASDAQ:AAPL) is concerned, there was nothing much to worry about the judgment of infringing three patents that were allegedly held by Smartflash. The history indicated that the company was able to convince the judges during the appeal process in at least two verdicts, which were given by the same Texas court.


Following the Texas District Court order of payment of $533 million by Apple Inc. (NASDAQ:AAPL) to Smartflash, the technology bellwether has already said that it would appeal in a separate Court in Washington. Incidentally, judges in Washington Court has also sought to rein in the capacity of the patent holders to demand higher royalty payments.

A Professor in Law at New Jersey’s Rutgers University, Michael Carrier, told Bloomberg that the award would not hold up in a Court. He said that if there was going to be a big verdict, the order is either slashed or overturned before it makes the appeals process.

Smartflash charged Apple Inc. (NASDAQ:AAPL) with the three patent infringements before the Texas District court and sought damages of $852 million. The technology bellwether disclosed that there was no need to pay over $4.5 million. Smartflash said that it was eligible for a percentage of sales of Apple’s products such as iPad, iPhone, and Mac computers, which provides access to iTunes.

Earlier Case

In the appeals court, there is limited opportunity to make arguments when it involved a complex device. It was the main reason why the earlier verdict of $368.2 million damage award was overturned. Virnetx Holding Corp. won the damages in the same Texas court over the features of security.

Similarly, in 2011, a $625.5 million order was thrown out following the findings that the Judge got it wrong.

As far as the current case was concerned, the amount of damage was partly due to the size of Apple Inc. (NASDAQ:AAPL). The judge ordered damages that are less than one percent of its cash and marketable securities of $178 billion. However, a patent lawyer, Robert Stoll, said that the money was still big and does not think that the amount would stand.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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