Apple faces $533m iTunes patent disbursement

Apple lost a patent case, which included some of the technologies it makes use of in its iTunes store.

The company has received an order to pay an amount of $533m (£344m) to Smartflash, a firm that is based in British Island, having possession of tech-related patents and also possesses the licenses however does not make products itself.

A bigger payout has been asked by Smartflash and also stated that it was “happy” with the verdict.

But according to Apple, it was willing to appeal and called for patent reclaim..

“We refused to pay off this company for the ideas our employees spent years innovating and unfortunately we have been left with no choice but to take this fight up through the court system,” the iPhone maker told in a statement.

Apple’s defeat by Smartflash is the latest in a series of victories by companies referred to as non-practising entities (NPEs), and denounced by their critics as being “patent trolls”.

Apple’s defeat has landed it in the category of the companies referred to as non-practicing entities (NPEs), and condemned by the critics as being “patent trolls”.

Earlier this month, Rembrand ID was supposed to be paid by Samsung with an amount of $15.7m for violating two patents related to Bluetooth and security firm Symantec was ordered to pay Intellectual Ventures $17m for making use of two anti-malwares inventions it owned.

The total amount of the penalty imposed on Apple was, in part, decided with the reasoning that the jury felt the tech giant had not only made use of Smartflash’s intellectual property without any permission, but had also done so “wilfully” – meaning it had been fully aware of the infringement.


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