Apple ordered to pay $530 million for patent infringement
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A federal judge has ordered Apple to pay more than $530 million to a licensing firm over its iTunes software.
In 2013 Smartflash sued Apple for infringing patents related to accessing and storing downloaded songs, videos and games.
And after two years of trials - including eight hours of deliberation - the jury awarded in favour of the Texas-based firm.
A federal judge has ordered Apple to pay $532.9 million to a licensing firm over of its iTunes software (pictured). Smartflash sued Apple for infringing patents related to accessing and storing downloaded songs, videos and games. And after eight hours of deliberation the jury awarded in favour of the Texas-based firm
Apple has now been ordered to pay Smartflash $532.9 million (£343 million) for infringing a total of three patents.
The jury determined Apple had not only used Smartflash's patents without permission, but did so willfully.
Smartflash filed its first patent infringement against the tech giant in May 2013.
It said that patent owner and co-inventor Patrick Racz met with a firm called Gemplus - now known as Gemalto - to discuss the technology.
One of people at this meeting was Augustin Farrugia who is currently a senior director at Apple.
The filing accused Apple of using technology covered by Smartflash's patents to create and develop its iTunes software.
Despite the win, however, Smartflash had been asking for $852 million (£550 million).
'Smartflash is very happy with the jury's verdict, which recognises Apple's longstanding willful infringement,' said Brad Caldwell, a lawyer for Smartflash.
But Apple has said it will appeal, adding the outcome was another reason reform was needed in the patent system to curb litigation by companies that don't make products themselves.
'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,' Apple said in a statement.
The trial was held in Tyler which over the past decade has become a focus for patent litigation.
It was in Tyler federal court that a jury in 2012 ordered Apple to pay $368 million (£237 million) to VirnetX for patent infringement.
But a federal appeals court later threw out that damages figure, saying it was wrongly calculated.
Smartflash filed its first patent infringement (shown) against the tech giant in May 2013. It said that patent owner and co-inventor Patrick Racz met with a firm called Gemplus - now known as Gemalto - to discuss the technology. One of people at this meeting was Augustin Farrugia who is currently a senior director at Apple
Apple tried to avoid the recent trial by having the lawsuit thrown out.
Apple had asked the jury to find Smartflash's patents invalid because previously patented inventions covered the same technology.
But US District Judge Rodney Gilstrap, who presided over the case, ruled earlier this month that Smartflash's technology was not too basic to deserve the patents.
Smartflash has also filed patent infringement lawsuits against Samsung, HTC and Google.
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