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CalTech Gets $1.1B From Apple, Broadcom For Patent Infringement, Companies To Appeal

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CalTech Gets $1.1B From Apple, Broadcom For Patent Infringement, Companies To Appeal

The California Institute of Technology has won about $1.1 billion in a settlement in a lawsuit it brought against Apple Inc. (NASDAQ: AAPL) and supplier Broadcom Inc. (NASDAQ: AVGO) for patent infringement.

What Happened

A Los Angeles court ordered Apple to pay $837.8 million and Broadcom to pay $270.2 million to CalTech, Reuters reported Wednesday.

The Pasadena-based school had sued the two companies in 2016 on the grounds that the Broadcom Wi-Fi chips used in Apple devices infringed on its patent relating to data transmissions technology,

"We are pleased the jury found that Apple and Broadcom infringed Caltech patents," CalTech said in a statement, according to Reuters.

"As a non-profit institution of higher education, Caltech is committed to protecting its intellectual property in furtherance of its mission to expand human knowledge and benefit society through research integrated with education."

Broadcom, Apple, Plan To Challenge

The affected companies are planning to appeal against the jury's verdict.

"While we thank the members of the jury for their service, we disagree with the factual and legal bases for the verdict and intend to appeal," Broadcom said in a statement, as reported by Reuters.

Apple also told the wire that it planned to challenge the decision in court but didn't give further comments.

Price Action

Apple's shares closed 2.09% higher at $324.34 after it reported its quarterly earnings on Wednesday that beat analyst estimates significantly. The shares traded slightly lower in the after-hours market.

Broadcom's shares closed 0.25% lower at $317.51. The shares traded 11 cents higher in after-hours.

Photo Credit: Public domain photo via Wikimedia.

 

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