Court orders Apple must pay WARF $234M for infringing CPU patent

Posted:
in General Discussion edited October 2015
A Wisconsin federal court judge ruled in favor of a recent jury decision that has Apple on the hook for $234.3 million in damages award for infringing on a computer processor patent asserted by the Wisconsin Alumni Research Foundation.




U.S. District Court Judge William M. Conley handed down his decision on Monday, agreeing with a jury's finding that Apple infringed on six claims of U.S. Patent No. 5,781,752 with its A7 and A8 system-on-chip designs. The jury turned in its decision earlier this month.

Judge Conley dismissed Apple's motions for judgment as a matter of law on liability, literal infringement claims and damages. Apple failed arguments included assertions that its A7 and A8 variants do not meet strict criteria detailed in the patent-in-suit, while another sought to avoid damages by claiming a processor must be fully operational to be capable of infringement. The latter argument stemmed from Apple's attempts to pass off blame to A-series chip manufacturer Samsung.

The jurist did not find Apple to have willfully infringed on the patent, a ruling that stymies WARF's bid to significantly enhance damages.

WARF filed its initial complaint against the A7 and A8 line of SoC and the products they powered, including the iPhone 5S, iPad Air and iPad Mini with Retina display. Apple later incorporated the A7 into iPad mini 3 models, while the A8 and A8X were deployed in the iPhone 6, 6 Plus and multiple iPad versions, all of which were added to the suit.

For its part, Apple denies infringing on the mobile processor design, a novel IP aimed at boosting power efficiency and performance through branch predictor circuits. The iPhone maker previously petitioned the U.S. Patent and Trademark Office to invalidate WARF's patent, but the attempt was rejected earlier this year.

Monday's ruling is another win for WARF, which has successfully leveraged the '752 patent against big-name tech companies like Intel. In fact, WARF sought to incorporate Intel's prior settlement as an "established royalty" to calculate damages, but the motion was ultimately rejected. As the University of Wisconsin's non-profit patent management body, WARF is responsible for licensing inventions developed at the institution, with monetary gains funding future research.

In September, WARF lodged a second lawsuit against Apple over the company's latest A9 and A9X SoCs, chips currently powering the iPhone 6s, 6s Plus and upcoming iPad Pro.
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Comments

  • Reply 1 of 32
    It seems that the vast majority of lower court patent judgements against Apple get overturned on appeal when actual (hopefully well-educated and intelligent) judges are making the decisions instead of a jury of laymen who can barely spell patent and probably dozed off during hours of technical explanations that didn't mean a thing to them.

    Does anyone with legal/technical experience have an idea on the chances of this being overturned on appeal as well? Is it really a clear cut case of infringement on a valid patent?
  • Reply 2 of 32
    Quote:
    Originally Posted by GregInPrague View Post



    It seems that the vast majority of lower court patent judgements against Apple get overturned on appeal when actual (hopefully well-educated and intelligent) judges are making the decisions instead of a jury of laymen who can barely spell patent and probably dozed off during hours of technical explanations that didn't mean a thing to them.



    Does anyone with legal/technical experience have an idea on the chances of this being overturned on appeal as well? Is it really a clear cut case of infringement on a valid patent?

     

    Apple has already shot themselves in the foot with this one since they called for a review of the patent and it was upheld.  Unfortunately the way patents are these days it opens the door to abuse, and I have no doubt that Apple developed this without reference or knowledge of the patent they apparently infringed on -- but that is no defense under current law (going back 100s of years).  It is a short-term monetary hit which is not that large of a hit in reality for them.  They might have another payment if appeals do not overturn it due to the upcoming processors.... but if I read it right this patent expires in December 26, 2016.... just over a year away......  so it can only really affect them going forward for just over another year.

  • Reply 3 of 32
    Apple is totally screwed, but it seems Universities have now become Patent Trolls. What a shame, There are other universities like Berkeley or MIT who have generously given away there technical innovation as Education Licenses. Wisconsin cannot even match the caliber of MIT or Berkeley, yet they are profiting from work done in there campus which should just profit everyone in the Industry.
  • Reply 4 of 32

    They change the court process for patents and route ALL patent disputes to a federal patent court.  The jury would be made up of peers (those with a solid scientific background) and the jury would be paid the equivalent of a reasonable hourly consulting fee (since the pool is less).

  • Reply 5 of 32
    adamcadamc Posts: 583member
    Quote:

    Originally Posted by bkkcanuck View Post

     

     

    Apple has already shot themselves in the foot with this one since they called for a review of the patent and it was upheld.  Unfortunately the way patents are these days it opens the door to abuse, and I have no doubt that Apple developed this without reference or knowledge of the patent they apparently infringed on -- but that is no defense under current law (going back 100s of years).  It is a short-term monetary hit which is not that large of a hit in reality for them.  They might have another payment if appeals do not overturn it due to the upcoming processors.... but if I read it right this patent expires in December 26, 2016.... just over a year away......  so it can only really affect them going forward for just over another year.




    When Samsung asked for a review they always got it so what did Apple do wrong or perhaps they should ask for the review anonymously?

  • Reply 6 of 32
    gwydiongwydion Posts: 1,083member
    Quote:

    Originally Posted by AdamC View Post

     



    When Samsung asked for a review they always got it so what did Apple do wrong or perhaps they should ask for the review anonymously?


    They didn't did anything wrong, they asked for a review and the review was done. Sometimes the whole patent or some claims are invalidated and sometimes not

  • Reply 7 of 32
    Quote:

    Originally Posted by Gwydion View Post

     

    They didn't did anything wrong, they asked for a review and the review was done. Sometimes the whole patent or some claims are invalidated and sometimes not


    Did not say they did do anything wrong, but once the review was complete and upheld -- that was then powerful evidence that the patent was valid (as far as the jury is concerned) and was a very very high hurdle to get over.  Strategically, it might have been a mistake - if the likelihood of a review overturning it is not great then going directly to court is the better option.

  • Reply 8 of 32
    genovellegenovelle Posts: 1,480member
    The difference is Samsung has been using the court system worldwide against it self for some time. It is a part of their plan from the beginning. A big part of what they do is stall and delay for years until they find a way to escape any negative rulings.
  • Reply 9 of 32
    larryjwlarryjw Posts: 1,031member
    I simply don't believe lay juries are capable of understanding the arcane language of patents, and are unable to understand the technology sufficiently to align it with the patent language. I'm sure I could learn enough to make such judgments if I were sitting on such a jury, but I'm certain it would take much study to do so -- and I'm an attorney with an MS in computer science.
  • Reply 10 of 32
    roakeroake Posts: 811member

    Didn't I read about this here last week?

  • Reply 11 of 32
    Quote:

    Originally Posted by LarryJW View Post



    I simply don't believe lay juries are capable of understanding the arcane language of patents, and are unable to understand the technology sufficiently to align it with the patent language. I'm sure I could learn enough to make such judgments if I were sitting on such a jury, but I'm certain it would take much study to do so -- and I'm an attorney with an MS in computer science.



    It really comes down to who has the better lawyer and which party can be made to look more favorable.   Mega corporation vs university will never be good for the mega corporation in these cases so long as the university spends on lawyers.  Unless the jury is a group of engineers the plaintiff will not be treated well. 

  • Reply 12 of 32

    I am not sure what is truly right or wrong here.  I do know as a business many times you are at a disadvantage in these situations regardless of what is fact.

  • Reply 13 of 32
    gatorguygatorguy Posts: 24,213member
    bkkcanuck wrote: »
    Did not say they did do anything wrong, but once the review was complete and upheld -- that was then powerful evidence that the patent was valid (as far as the jury is concerned) and was a very very high hurdle to get over.  Strategically, it might have been a mistake - if the likelihood of a review overturning it is not great then going directly to court is the better option.
    The University wasn't allowed to mention that Apple's request for an Inter Partes review was denied. Why was it denied? Apple wasn't able to show satisfactory evidence that the claims were possibly invalid and thus warranted anther look. Apple took a second shot at its arguments to the court. Same result. WARF would have liked the jury to be aware of the USPTO finding as it might have increased the damages award, but the judge felt it would be prejudicial to Apple and denied it.
  • Reply 14 of 32
    tenlytenly Posts: 710member
    The way I read this is that the organization that patented the technology is the same organization that is asserting the patent. That makes them different from a patent troll. It's not clear from the article, but I assume that the university published papers or had professors speak about their technology at some point in the past - and even though corporate Apple didn't knowingly infringe on this parent - I see it as possible that one of their CPU engineers may have at some point hear or overheard some reference to this technology - even just vaguely - but that vague reference to the technology optimization fostered and grew in their brain to eventually become a solution similar enough to infringe on the original patent. The engineer in question may not even realize that it's not 100% his own invention - but even if the above speculation is not true and it is a case of 2 discrete entities arriving at the same solution independently - WARF got there first and patented it. The amount awarded seems reasonable and not punitive and the money is reported to be going towards funding future research so I see thins particular case very differently than any of the other patent infringement suits that have been reported over the past few years. This case seems to be much more closely aligned with the protection intended by the patent system.

    The only thing I see as disappointing here is that they originally asked for a punitive award instead of a fair licensing deal. I would have preferred to see Apple voluntarily pay a reasonable license fee and have more of that fee go to research and less to the lawyers.
  • Reply 15 of 32
    Meh. So Apple has to dig some loose change from the couch. Things like this happen all the time with complex devices like processors. There's just too much IP inside to NOT have stepped on someone's toes.

    Besides, the patent expires next year (I believe), so Apple won't have to pay for a license for subsequent processors.

    I'm not saying Apple is 100% guilty, or they shouldn't fight it, but if they eventually have to pay it's not that big of a deal. As they say "It's just business."
  • Reply 16 of 32
    Is this new news!?
  • Reply 17 of 32
    Is this new news!?

    Yep.
  • Reply 18 of 32
    Quote:

    Originally Posted by bkkcanuck View Post

     and I have no doubt that Apple developed this without reference or knowledge of the patent they apparently infringed on


     

    Not true. They referenced this patent in their own. They were very much aware of it, especially with the Intel case.

    See the article from last week. 

    Quote:


     It was argued that Apple willfully infringed on the '752 patent, as it cited the property in its own patent filings. Further, the lawsuit claims Apple refused WARF's requests to license the IP. 


    http://appleinsider.com/articles/15/10/13/apple-found-infringed-on-university-of-wisconsin-cpu-patent-faces-862m-in-damages

     

    Apple felt theirs was different enough. Win some, lose some. 

  • Reply 19 of 32
    gatorguygatorguy Posts: 24,213member
    Meh. So Apple has to dig some loose change from the couch. Things like this happen all the time with complex devices like processors. There's just too much IP inside to NOT have stepped on someone's toes.

    Besides, the patent expires next year (I believe), so Apple won't have to pay for a license for subsequent processors.

    I'm not saying Apple is 100% guilty, or they shouldn't fight it, but if they eventually have to pay it's not that big of a deal. As they say "It's just business."
    One more case to deal with citing Apple's latest round of chips also claimed to be infringing. I don't know why Apple wouldn't just settle that one with a license considering the outcome of the current lawsuit but perhaps they have a policy not to, prefering litigation? I thought I'd read once that Apple doesn't license from NPE's without going to court.

    By the way, whether Apple's infringement was willful hasn't been ruled on yet AFAIK. That would still be coming.

    EDIT: Apparently it is correct that Apple has a policy of not responding to licensing offers from (at least smaller) patent holders. No wonder they get sued so often then.

    EDIT2: The judge did already find (10/16) there was no willful infringement, so that's been dealt with.
  • Reply 20 of 32
    sirlance99sirlance99 Posts: 1,293member
    Apple is totally screwed, but it seems Universities have now become Patent Trolls. What a shame, There are other universities like Berkeley or MIT who have generously given away there technical innovation as Education Licenses. Wisconsin cannot even match the caliber of MIT or Berkeley, yet they are profiting from work done in there campus which should just profit everyone in the Industry.

    Did you forget that Apple was part of Rockstar? A huge patent troll.
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