Washington Post:
You may have heard that Apple’s on the hook for $862 million in potential penalties after a jury ruled that it infringed on a patent owned by the University of Wisconsin–Madison.The university appears to be asking for roughly half that amount, about $400 million, but that is still a huge amount of money, particularly in relation to a) the size of the university’s budget and b) how much Apple’s spent on Washington lobbyists to head off just these types of lawsuits. And the stakes aren’t limited to the fines: If Apple is forced to pay future royalties, it’ll add to the production costs of future iPhones and iPads. While that won’t necessarily lead to increased prices for consumers, it could drag down the company’s profits over the long run even as it grapples with the reputational fallout of having copied someone else’s work.
Apple is almost sure to appeal, and it could very well get the fines reduced further or eliminated, as it did with another recent patent case this year. Still, the ruling represents a stinging rebuke for a company that has spent years accusing its rival, Samsung, of essentially stealing its hardware designs.
Many have and will call the University of Wisconsin–Madison a “patent troll” but that’s not necessarily the case in this particular situation. This does bring into question once again patents and lawsuits. The jury award could also open Apple up to further damages if they also loses a second lawsuit UW-Madison filed against the iPhone 6S, 6S Plus and the iPad Pro.