Judge Drops Apple's $533M Fine in iTunes-Related Lawsuit, Sets New Damages Trial

newitunes122logoThe U.S. District Court for the Eastern District of Texas on Tuesday voided $532.9 million in damages awarded to patent licensing firm Smartflash LLC in February in an iTunes-related patent lawsuit, per Reuters.

The report claims federal judge Rodney Gilstrap has set a new damages trial on September 14 after ruling that "his jury instructions might have 'skewed' jurors' understanding of the damages that Apple should pay."

Apple was initially ordered to pay $532.9 million in damages to Smartflash LLC after a federal jury in the Tyler, Texas courtroom found certain iTunes apps to be infringing upon the company's patents related to digital rights management, data storage and managing access through payment systems.

Apple countered that Smartflash LLC was exploiting the patent system to collect royalties.

“Smartflash makes no products, has no employees, creates no jobs, has no U.S. presence, and is exploiting our patent system to seek royalties for technology Apple invented,” said Kristin Huguet, an Apple spokeswoman. “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.”

Smartflash LLC was originally seeking $852 million in damages, and claimed it was entitled to a percentage of sales of Apple products used to access iTunes, such as iPhones, iPads and Macs. Apple argued that $4.5 million was fair at most, claiming it does not infringe upon any of Smartflash LLC's inventions and that its patents are invalid.

Apple likely still faces a fine of a different amount pending the results of the new damages trial scheduled for September, but the iPhone maker plans to appeal the decision.

Related Forum: Mac Apps

Top Rated Comments

duffman9000 Avatar
91 months ago
Is this the same "judge" that is leaving NewEgg hanging ('http://arstechnica.com/tech-policy/2015/07/after-20-month-delay-a-furious-newegg-still-cant-appeal-2-3m-patent-loss/') on another trial? Sounds like another judge who loves hearing the sound of his own voice.

EDIT: Yup, same creep.
Score: 7 Votes (Like | Disagree)
roland.g Avatar
91 months ago
Eastern Texas patent courts. It's like some sort of cocoon for last century thinking.
Score: 4 Votes (Like | Disagree)
bbeagle Avatar
91 months ago
OH EM GEEE.. Apple could never do wrong, this is just DUMB... pathetic "patent trolls" just wanting a handout. :rollseyes:

Apple does wrong
Patent trolls exist
Both do wrong
Get over it

This judge is an idiot too.
Apple also does a lot right
Maybe you shouldn't label every Apple fan as someone who says Apple does no wrong.
Less than 1% of the zealots here think Apple is God.
A lot more people here think Apple is the anti-christ than think they are God.
Get over it
Score: 3 Votes (Like | Disagree)
bbeagle Avatar
91 months ago
You would need to ask Apple...
Or MOST companies. Almost EVERY company holds many patents they don't use. That's the nature of the beast.

Microsoft and Google hold far more patents than Apple - why aren't you singling them out like you are with Apple?
Score: 2 Votes (Like | Disagree)
knemonic Avatar
91 months ago
These patent trolls need to go on Horders.
Score: 2 Votes (Like | Disagree)
Dilster3k Avatar
91 months ago
Off-topic: I'm sorry but that new icon just doesn't blend in nicely with my dock...
It looks nice, but doesn't quite fit in next to the App Store & iBooks icons.
Score: 1 Votes (Like | Disagree)

Popular Stories

2022 back to school apple

Apple Launches 2022 Back to School Offer: Up to $150 Gift Card With Mac or iPad

Friday June 24, 2022 5:08 am PDT by
Apple today launched its annual "Back to School" promotion for college/university students in the United States and Canada. This year's promotion offers a free Apple gift card with the purchase of an eligible Mac or iPad, rather than free AirPods like last year. Apple is also offering students 20% off AppleCare+ plans during the promotion. Apple is offering a $150 gift card with the purchase ...
widgets ios 16 feature

Gurman: iPhone 14 Pro to Feature Always-On Display Showing iOS 16's New Lock Screen Widgets

Sunday June 26, 2022 7:36 am PDT by
iPhone 14 Pro models are widely expected to feature always-on displays that allow users to view glanceable information without having to tap to wake the screen. In the latest edition of his Power On newsletter for Bloomberg, Mark Gurman said the feature will include support for iOS 16's new Lock screen widgets for weather, fitness, and more. "Like the Apple Watch, the iPhone 14 Pro will be...
m2 mac mini screen feature

Gurman: Apple Planning M2 Pro Mac Mini, New Apple TV With A14 Chip, Revamped HomePod With S8 Chip, and More

Sunday June 26, 2022 6:31 am PDT by
In the latest edition of his Power On newsletter for Bloomberg, Mark Gurman outlined additional M2 Macs on Apple's product roadmap, including new Mac mini models with M2 and M2 Pro chips, new 14-inch and 16-inch MacBook Pro models with M2 Pro and M2 Max chips, and a new Mac Pro tower with M2 Ultra and "M2 Extreme" chips. Following the M2 series of Macs, Gurman said the first M3 series of...
13 inch macbook pro m2 mock feature 2

Base 13-Inch MacBook Pro With M2 Chip Has Significantly Slower SSD Speeds

Sunday June 26, 2022 2:52 pm PDT by
Following the launch of Apple's new 13-inch MacBook Pro with the M2 chip, it has been discovered that the $1,299 base model with 256GB of storage has significantly slower SSD read/write speeds compared to the equivalent previous-generation model. YouTube channels such as Max Tech and Created Tech tested the 256GB model with Blackmagic's Disk Speed Test app and found that the SSD's read and...
M2 Pro and Max Feature

Apple's Upcoming M2 Pro Chip for High-End MacBook Pro and Mac Mini Will Reportedly Be 3nm

Monday June 27, 2022 7:31 am PDT by
TSMC will manufacture Apple's upcoming "M2 Pro" and "M3" chips based on its 3nm process, according to Taiwanese industry publication DigiTimes. "Apple reportedly has booked TSMC capacity for its upcoming 3nm M3 and M2 Pro processors," said DigiTimes, in a report focused on competition between chipmakers like TSMC and Samsung to secure 3nm chip orders. As expected, the report said TSMC will...
airpods pro 2 1

AirPods Pro 2 Said to Feature Upgraded H1 Chip, Find My, Heart Rate Detection, USB-C and More

Friday June 24, 2022 9:48 am PDT by
The next-generation AirPods Pro could come with a long list of new features that include heart rate detection, the ability to function as a hearing aid, and a USB-C port according to a report from 52Audio. The site claims that it has received new information on the AirPods Pro 2, and it has used that information to provide some renders on what the earbuds might look like. Design wise, there...
tesla carplay hack

Tesla Apple CarPlay Hack Updated to Work With Any Tesla Model

Monday June 27, 2022 3:38 am PDT by
Polish developer Michał Gapiński has released a new and improved version of his "Tesla Android Project" which brings Apple's CarPlay experience to more Tesla vehicles than ever before. According to Gapiński, version 2022.25.1 provides "100% functional CarPlay integration for any Tesla," and comes with several new features and bug fixes. The project now supports DRM video playback so that...