Apple Won't Have to Pay $309M After Judge Accuses Patent Troll of Abusing System to Fleece Tech Companies

Apple today scored a victory in an ongoing patent dispute with Personalized Media Communications (PMC), with the judge overseeing the case tossing out the $308.5 million verdict that Personalized Media Communications won in March, reports Bloomberg.

PMClogonewer
Apple was a victim of PMC's plan to milk the tech industry for high royalties on old ideas, U.S. District Judge Rodney Gilstrap said when delivering the verdict. The judge decided that PMC's patent for digital rights management is unenforceable because the company delayed its application with the U.S. Patent and Trademark Office in an attempt to get more money.

PMC filed hundreds patent applications in the 1980s and 1990s, but no patents were awarded until 2010. The company took advantage of a loophole that allowed for an indefinite application process and then a patent valid for 17 years. This was addressed in 1995, but didn't apply to the patents used against Apple because they were filed earlier.

PMC delayed receiving its patents until after the technology in the patent had already been adopted, letting it make more money from tech companies.

Internal documentation from PMC suggested the company had thought that Apple would be a "natural candidate" to target with delayed patents, along with Intel, IBM, and Microsoft.

PMC won a $308.5 million verdict against Apple in March after a jury said that Apple infringed on DRM patents with its FairPlay technology that is used to distribute encrypted content through iTunes, the App Store, and Apple Music.

Popular Stories

Apple Announces Special Event in New York Feature

Apple Announces Special Event in New York, London, and Shanghai on March 4

Monday February 16, 2026 6:05 am PST by
Apple today announced a "special Apple Experience" in New York, London, and Shanghai, taking place on March 4, 2026 at 9:00am ET. Apple invited select members of the media to the event in three major cities around the world. It is simply described as a "special Apple Experience," and there is no further information about what it may entail. The invitation features a 3D Apple logo design...
Apple Announces Special Event in New York Feature 1

Apple Event on March 4: Here's What to Expect

Tuesday February 17, 2026 8:08 am PST by
Apple on Monday invited selected journalists and content creators to a "special Apple Experience" on Wednesday, March 4 in New York, London, and Shanghai. At an Apple Experience, attendees are typically given the opportunity to try out Apple's latest hardware or software. Following the launch of Apple Creator Studio last month, for example, some content creators attended an Apple Experience...
M3 iPad Air

Apple's Next Two Products Are Coming Soon

Thursday February 12, 2026 11:17 am PST by
Apple plans to release an iPhone 17e and an iPad Air with an M4 chip "in the coming weeks," according to the latest word from Bloomberg's Mark Gurman. "Apple retail employees say that inventory of the iPhone 16e has basically dried out and the iPad Air is seeing shortages as well," said Gurman. "I've been expecting new versions of both (iPhone 17e and M4 iPad Air) in the coming weeks."...
iphone 17 pro dark blue 1

Gurman: iPhone 18 Pro Could Be Underwhelming

Monday February 16, 2026 4:24 am PST by
Apple's upcoming iPhone 18 Pro and iPhone 18 Pro Max models "won't be a big update," according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman said that the iPhone 18 Pro models will "represent minor tweaks from last year's iPhone 17 Pro and 17 Pro Max." He compared the upgrade to Apple's past practice of appending the letter "S" to its more minor...
Apple Announces Special Event in New York Feature 1

Rumor: Apple to Announce Multiple New Products in First Week of March

Tuesday February 17, 2026 6:35 pm PST by
Apple on Monday invited selected journalists and content creators to a "special Apple Experience" on Wednesday, March 4 in New York, London, and Shanghai. And now, rumors are surfacing about Apple's broader plans for that week. Daring Fireball's John Gruber today guessed that Apple will announce new products on a day-by-day basis from Monday, March 2 through Wednesday, March 4:What strikes...

Top Rated Comments

59 months ago
Patent trolls are ruining the system for everyone.
Score: 33 Votes (Like | Disagree)
MJaP Avatar
59 months ago
Hopefully this judgement will make a large chunk of PMC's portfolio utterly worthless.
Score: 30 Votes (Like | Disagree)
Apple_Robert Avatar
59 months ago
Sounds like the judge made the right call.
Score: 26 Votes (Like | Disagree)
hot-gril Avatar
59 months ago
A great victory, but there will be more of these guys.
Score: 24 Votes (Like | Disagree)
59 months ago

Put on your thinking cap... where do you think the "patent troll" acquired the patent?
Put on your basic math skills: They came up with these ideas and filed for patents in the late '80s. In the intent of the patent system, and any reasonable fair world, they would have 17 years to use or otherwise monetize their idea and profit from it, so until around 2005.

Instead, they intentionally delayed actually getting the patents until at least 2010, well over 17 years after they publicized the idea in the first place and only once the ideas were in widespread use. At no point between whenever they applied and when the patent was granted two decades later did they actually attempt to develop, market, or otherwise use these ideas for the benefit of society, or themselves. In fact, their entire strategy was to lie low and hope nobody even noticed, eventually developed the same thing independently, and it became widespread.

They did this with the express purpose of extending the patent profit window well past the 17-year limit. Worse, they abused how it worked to patent something that had been developed decades ago, re-developed since, and was already in common use and maybe had been for years. And then they didn't defend it, they waited even longer until a big target started using it so they had someone to cash in on.

They didn't create anything, they gamed the system.

As noted in the article, the USPTO actually closed this loophole 26 years ago, way back in 1995, because they realized it was stupid and open to abuse. But this company started the long con before then so got the con grandfathered in.

All of this is exacerbated by how vague the patent office will allow tech patents to be, so you can patent just about anything, and the only defense for society is that at least it can't extend past 17 years.

It's pretty much a guaranteed recipe for profit: Come up with some either vague or extremely specific tech ideas that aren't currently being used but seem like they might be some day. File for patents on them, then wait however long it takes for them to actually be used. Then wait some more until they're in use by a big, rich company. Finish the patent application process, and sue.

You never built anything, your idea has been public for decades, and you get a huge-money payout for doing nothing but applying for patents on a bunch of ideas that aren't yet usable and playing the waiting game.
Score: 19 Votes (Like | Disagree)
59 months ago
NOT just a win for Apple, but for ALL Tech Companies that actually produce "something" !
Score: 17 Votes (Like | Disagree)