Patent licensing firm wins $533 million infringement verdict against Apple

By Jessica M. Karmasek | Mar 4, 2015

TYLER, Texas (Legal Newsline) - A federal jury has sided with a Texas-based licensing company, awarding it nearly $533 million after finding that Apple Inc. infringed a series of its patents in producing and selling the iPhone, iPod Touch and iPad.

The trial focused on three patents from Smartflash’s patent portfolio covering particular devices and methods for storing data and providing access to that data through electronic payment systems and use rules.


Smartflash, which is based in Tyler, claimed that Apple practiced the three patents -- U.S. Patent Nos. 7,334,720; 8,118,221; and 8,336,772 -- without permission in the accused products.


On Feb. 24, a jury for the U.S. District Court for the Eastern District Court of Texas found that Apple’s infringement was willful and awarded Smartflash $532,900,000.


Jurors also found that Apple failed to prove that any claim of the three contested Smartflash patents was invalid.


The jury heard testimony that Apple generated $43.4 billion from sales of devices purchased by people who bought them based on the infringing functionality.


Apple has said it will appeal the verdict.


Smartflash filed another lawsuit against Apple Feb. 25 -- just one day after its court victory.


Smartflash, in its latest lawsuit, which was filed in the same federal court in Tyler, alleges Apple infringed a total of seven of its patents, including the three that were part of its previous complaint against Apple.


According to a search of PACER, an online service that provides access to federal court documents, Smartflash has filed similar lawsuits against Samsung, Google and Amazon.


From Legal Newsline: Reach Jessica Karmasek by email at patents@legalnewsline.com.

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