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Apple to Face over $500 million Payout on iTunes Patent

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Published on : Feb 26, 2015

Recently, Apple was accused of using inventions knowingly which were owned by another business in iTunes. The tech giant suffered a patent loss which involved some of these technologies that were used by the iTunes store.

As a result the company has been ordered to pay a fine of US$533 million to the company Smartfish. Smartfish is a company which is based in British Virgin Islands and has licenses which are tech-related patents however; the company does not manufacture products itself. Smartfish demanded for a bigger payout, however, stated that they were happy with the court’s verdict. But, Apple stated that it intends to appeal to the court and call for a patent reform.

According to the iPhone marker, they refuse to pay off this company for the ideas which their employees have spent years on innovating. But, unfortunately they have been left with no choice and are going to take this fight up via the court system.

The defeat of Apple due to Smartfish is the latest in a range of victories which the companies referred to as NPEs or non-practicing entities and have denounced their critics as patent trolls.

Previously, this month Samsung was ordered by the court to pay Rembrandt IP a fine of US$15.7 million due to infringing its two Bluetooth-related patents and the security company Symantec was asked to pay the company Intellectual Ventures US$17 million for using their two anti-malware innovations which the company owned.

The scale of the imposed penalty this time was imposed on Apple and according to the court was determined by the fact that the jury felt this company did not only use Smartfish’s intellectual property without any permission, but also did it meaning that they were aware of the infringement.