The Supreme Court recently released its decisions from 2022 arguments. While the dismantling of affirmative action and blocking of student loan discharge is capturing the media’s attention, the Supreme Court denied an appeal by Apple that could have a major impact on the company.
The Wall Street Journal reports that the Supreme Court denied Apple and Broadcom’s final appeal in a patent case against Caltech. The technology in question was developed by Caltech and increased Wi-fi speed and range, critical components in Apple’s devices. Broadcom, Apple’s co-defendent, is the maker of advanced wifi chips.
Caltech first sued Apple in 2016, winning a 1.1 billion dollar settlement from a Los Angeles jury. A Patent and Trademark Office administrative court also upheld the validity of the patent. In 2022, the Federal Circuit Court of Appeals confirmed the jury’s findings, but requested the damages be recalculated. If Apple has been profiting from this technology for now 7 years, it could expect damages to be much higher.
The Supreme Court’s decision to deny further appeals , in part based on the recommendations of the Department of Justice, has sealed Apple’s fate. Apple remains the highest valued company in the world, closing at over $3 trillion on Friday. Whether Apple and Broadcom sue each other also remains to be seen.
Apple and other Big Tech firms are often accused of engaging in uncompetitive practices. Major tech companies will usually acquire products they value, such as Instagram and WhatsApp, or “Sherlock” them by copying features such as with Day One and the upcoming Apple Journal. In this instance, Apple could be paying dearly for its patent infringement.
