Apple Inc. (NASDAQ:AAPL) Loses $539 Million Patent Infringement Suit, More On The Way

Apple Inc. (NASDAQ:AAPL) was ordered to pay $532 million in a patent infringement lawsuit. The massive tech giant was found to have violated tech patents by Texas-based Company, Smartflash. Smartflash also filed another patent lawsuit immediately after the decision was made public alleging Apple violated it patents for devices that were released after the original case was filed.

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Other Lawsuits

This could be creating a volatile situation for Apple as others are in line with patent lawsuits also. Ericsson, a Swedish mobile phone maker and pioneer, has filed seven more lawsuits that accuse Apple of infringing on 41 patents. The lawsuits were filed with the US International Trade Commission. These suits cover various Apple products that are related to iPads and iPhones. The two companies have filed multiple lawsuits with each other ever since a licensing agreement between them expired. The agreement was related to royalties Apple was due to pay Ericsson for the use of Ericsson’s mobile technology.

Existing Patents

The patents in question cover high-speed wireless technology related to 2G, 3G and 4G/LTE standards. These also cover GPS technologies. Ericsson is seeking to have an exclusion order filed and also recoup damages for lost royalties and other matters. Apple Inc. (NASDAQ:AAPL) commented on the suits and restated the fact it claims it is willing to pay a fair price for patents but has not been able to agree with Ericsson an what fair value actually amounts to. Thus they are asking for the courts to decide. The latest Smartflash suit focuses on Apple products released after the original filing and not covered under the recent decision. These include digital rights for song, games and other data in reference to the iPhone 6 and iPad Air 2. Apple stated that Smartflash has no business, no employees and no presence in the US and is trying to manipulate the patent system for its own profit.


The stock is trading at all-time highs but is seeing a substantial slowdown in momentum. It is probably best to hold or wait, before making any moves into the issue.

Scott Coper

Scott Coper

Coper graduated from the University of Chicagi with majors in political science and journalism.