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

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Less Than Two Months Away: Everything We Know

Thursday July 25, 2024 5:43 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
icloud private relay outage

iCloud Private Relay Experiencing Outage

Thursday July 25, 2024 3:18 pm PDT by
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...
iPhone 17 Plus Feature Purple

iPhone 17 Rumored to Feature Mechanical Aperture

Tuesday July 23, 2024 9:32 am PDT by
Apple is planning to release at least one iPhone 17 model next year with mechanical aperture, according to a report published today by The Information. The mechanical system would allow users to adjust the size of the iPhone 17's aperture, which refers to the opening of the camera lens through which light enters. All existing iPhone camera lenses have fixed apertures, but some Android...

Top Rated Comments

duffman9000 Avatar
118 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
118 months ago
Eastern Texas patent courts. It's like some sort of cocoon for last century thinking.
Score: 4 Votes (Like | Disagree)
bbeagle Avatar
118 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
118 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
118 months ago
These patent trolls need to go on Horders.
Score: 2 Votes (Like | Disagree)
Dilster3k Avatar
118 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)