TAKING A BITE OUT OF APPLE

Everyone rants and raves about the great Oz that is Apple, Inc. Millions stand in line for hours just to have the latest and greatest product that Apple has to offer. We are a society obsessed with the innovations of the great minds that are employed by Apple. However, a court has determined the great minds at Apple actually reside at the Wisconsin Alumni Research Foundation (WARF). WARF is an independent nonprofit technology transfer organization created to protect the discoveries of faculty at the University of Wisconsin-Madison and Morgridge Institute for Research.

In January 2014, WARF filed suit against Apple for the willful infringement of its 1998 patent, numbered 5,781,752 (752), titled “Table Based Data Speculation Circuit for Parallel Processing Computer” which improved chip efficiency. Apple’s A7, A8, and A8x processors which were used to power the iPhone 5s, 6 and 6 Plus, as well as several versions of the iPad, were at issue at trial.

Apple denied any infringement of the 752 patent and argued the patent was invalid. Apple took the invalid patent argument to the U.S. Patent and Trademark Office (USPTO) to request a review of the patent's validity. However, their bid was rejected in April of 2015.

At trial a jury also rejected Apple’s argument and found in favor of WARF. The jury awarded WARF $234.3 million dollars for Apple’s infringement of their 752 patent. WARF was not awarded triple damages because they jury found that Apple’s infringement was not “willful, intentional, and in conscious disregard of WARF’s right.”

Both Apple and WARF filed motion for judgment as a matter of law. Apple sought judgment in its favor on claims that WARF opted not to pursue at trial; specifically, claims for infringement under the doctrine of equivalents and indirect infringement. U.S. District Court Judge William M. Conley dismissed Apple’s motion. He also dismissed WARF’s motion for a directed verdict on damages.

This is the second victory for WARF in regards to their 752 patent. WARF’s first victory was against Intel for use of the 752 patent in their inter processors, which was settled for an undisclosed amount in licensing fees before trial in 2009.

Flowing from the heels of their latest victory, WARF filed a second lawsuit against Apple for the use of the 752 patent in their A9 and A9x chips, powering iPhone6s, 6s Plus, and the soon to be released iPad Pro.

I’m guessing WARF’s goal is to take a bigger bite of the Apple.

By: Astrid Johnson – Associate Editor of Business, Technology, and Medicine

Photo Credit: monkey punch. via flickr.com cc

Sources used:

http://appleinsider.com/articles/15/10/27/court-orders-apple-must-pay-234m-for-infringing-warf-patent

http://www.reuters.com/article/2015/10/13/us-apple-wisconsin-patent-idUSKCN0S72T320151013