Apple hit with $322 million bill in patent dispute over iPhone, iPad chip.
University of Wisconsin-Madison's licensing arm successfully argued that Apple used its patent in its A7 and A8 processors in the iPhone and iPad without permission. Photo: Bloomberg
by Susan Decker
Apple has been told to pay $US234 million ($322m) to the University of Wisconsin-Madison's licensing arm for infringing the school's patent on microprocessor technology.
The
amount set by a US federal jury in Madison was less than the $US400
million ($550m) sought by the Wisconsin Alumni Research Foundation.
Apple's lawyers argued the amount should be a fraction of the $US110
million ($151m) Intel paid in 2009 to settle an earlier dispute over the
same patent.
The dispute concerns the design of a
processor chip to improve performance. The foundation argued that Apple
refused to pay royalties on its A7 and A8 processors in the iPhone 5s
and iPad even after learning of the patent, issued in 1998. A second
case, filed in September, focuses on the A9 and A9X processors in newer
models of the iPhone and iPad.
The school contends
its technology "has been recognized as a major milestone of contemporary
computer processors" and led to awards for its inventors.
"This is a case where the hard work of our university
researchers and the integrity of patenting and licensing discoveries has
prevailed," Carl Gulbrandsen, managing director of the foundation, said
in a statement.
Rachel Wolf Tulley, a spokeswoman
for Apple, declined to comment on the jury's decision. The company
reported $US10.7 billion ($14.7b) in net income in the three months that
ended June 27.
