Apple Ordered to Pay $85 Million in Royalties to WiLan in Patent Infringement Case

[Why-Not-Me]

In a trial verdict rendered on August 1, 2018 in the United States District Court for the Southern District of California a jury awarded WiLAN $145.1 million in damages against Apple Inc. for infringement of WiLAN's U.S. Patent Nos. 8,457,145 and 8,537,757. In a January 4, 2019 ruling, Judge Dana Sabraw upheld the jury verdict that Apple infringed the two WiLAN patents. The court did not lower the damages award but did grant WiLAN the option to accept either reduced damages in the amount of $10.0 million or a new trial limited to determining the amount of damages only. This ruling confirms infringement and the only issue between the parties remains damages.

My main point is that Alcatel-Lucent, HTC and Sierra Wireless all signed contracts Sept. 16 - Oct. 15, 2013 before going to court knowing that they had infringed on Wi-LAN patents, yet Apple went to court and lost but is still fighting. Maybe Apple has more money than brains.

 

[Carnegie]

This legal battle has been going on since September 2, 2011 and Apple just keeps dragging it on and on and on and on and on and on and on. That is my point.

OTTAWA, Canada – September 2, 2011 – Wi-LAN Inc. (“WiLAN” or the “Company”) (TSX:WIN) (NASD:WILN), today announced that it has commenced litigation in the U.S. District Court for the Eastern District of Texas, Tyler Division against Apple, Inc., Alcatel-Lucent USA Inc., Dell Inc., Hewlett-Packard Company, HTC America, Inc., Kyocera International, Inc., Kyocera Communications, Inc., Novatel Wireless, Inc., and Sierra Wireless America, Inc. (individually and collectively, “Defendants”).

In its filing, WiLAN claims that these companies have infringed and continue to infringe WiLAN’s U.S. Patent No. RE37,802 (“the ‘802’ Patent”) related to CDMA and HSPA and U.S. Patent No. 5,282,222 (“the ‘222’ Patent”) related to Wi-Fi and LTE.

Apple won that 2011 case. The jury found Apple hadn't infringed the patent claims and that the patent claims were invalid. The Federal Circuit ultimately upheld those findings.

 

[Carnegie]

In a trial verdict rendered on August 1, 2018 in the United States District Court for the Southern District of California a jury awarded WiLAN $145.1 million in damages against Apple Inc. for infringement of WiLAN's U.S. Patent Nos. 8,457,145 and 8,537,757. In a January 4, 2019 ruling, Judge Dana Sabraw upheld the jury verdict that Apple infringed the two WiLAN patents. The court did not lower the damages award but did grant WiLAN the option to accept either reduced damages in the amount of $10.0 million or a new trial limited to determining the amount of damages only. This ruling confirms infringement and the only issue between the parties remains damages.

My main point is that Alcatel-Lucent, HTC and Sierra Wireless all signed contracts Sept. 16 - Oct. 15, 2013 before going to court knowing that they had infringed on Wi-LAN patents, yet Apple went to court and lost but is still fighting. Maybe Apple has more money than brains.

You're conflating cases. Those settlements you're referring to from 2013 were from the 2011 case. Yes, other parties which WiLan sued settled while Apple didn't. But then Apple won the case; Apple was found not to have infringed the patent claims and those claims were found to be invalid. Maybe the other parties shouldn't have settled?

Apple also won a 2012 case against WiLan involving different patents. Other parties had been involved in that case as well, but settled while Apple continued to defend itself. The Federal Circuit upheld the district court's finding that Apple hadn't infringed WiLan's patent claims.

Even in the case which is the subject of this thread Apple was able to successfully argue for a new damages trial and get the damages award reduced. It may or may not win at the Federal Circuit, but considering - among other things - that it won the previous two cases against WiLan it wouldn't seem unreasonable for Apple to continue to defend itself in this case.

 

[cmaier]

In a trial verdict rendered on August 1, 2018 in the United States District Court for the Southern District of California a jury awarded WiLAN $145.1 million in damages against Apple Inc. for infringement of WiLAN's U.S. Patent Nos. 8,457,145 and 8,537,757. In a January 4, 2019 ruling, Judge Dana Sabraw upheld the jury verdict that Apple infringed the two WiLAN patents. The court did not lower the damages award but did grant WiLAN the option to accept either reduced damages in the amount of $10.0 million or a new trial limited to determining the amount of damages only. This ruling confirms infringement and the only issue between the parties remains damages.

My main point is that Alcatel-Lucent, HTC and Sierra Wireless all signed contracts Sept. 16 - Oct. 15, 2013 before going to court knowing that they had infringed on Wi-LAN patents, yet Apple went to court and lost but is still fighting. Maybe Apple has more money than brains.

Apple *won* that case. I don’t understand what you are talking about. You think apple should have just paid just because those other defendants paid, instead of fighting and winning and having to pay nothing?

 

[Why-Not-Me]

Apple *won* that case. I don’t understand what you are talking about. You think apple should have just paid just because those other defendants paid, instead of fighting and winning and having to pay nothing?

OTTAWA, Jan. 24, 2020 /PR Newswire/ – Wi-LAN Inc. (“WiLAN”), a Quarterhill Inc. ("Quarterhill") company (TSX: QTRH) (OTCQX: QTRHF), today provided an update on ongoing litigation.

In a damages-only re-trial in the United States District Court for the Southern District of California commenced on January 21, 2020, the jury rendered its verdict today awarding WiLAN $85.23 million in damages owed to WiLAN by Apple Inc. (“Apple”) for the infringement of WiLAN's US patent Nos 8,457,145 and 8,537,757 (“Patents”).
In a previous related trial verdict rendered on August 1, 2018 in the same court, the jury in that case found that Apple infringed the Patents and awarded WiLAN $145.1 million in damages. In a subsequent hearing after that 2018 verdict, the court affirmed the jury’s finding of infringement but ordered another trial solely on damages which resulted in today’s new verdict.

Following a jury verdict win on January 24, 2020 of $85.23 million in a damages-only re-trial in the United States District Court for the Southern District of California (the "Court"), the Court ruled late yesterday on all post-trial motions and entered final judgment in favor of WiLAN, maintaining the full jury verdict and denying Apple's motions for retrial or lowering the damages award (the "Final Judgment"). The Court also awarded WiLAN an additional amount of $23.75 million in pre-judgment interest. The total award in the Final Judgment stands at $108.98 million and WiLAN is entitled to post-judgment interest from June 16, 2020 until the date this Final Judgment is satisfied. In addition, as indicated in the Court's Final Judgment, there are additional royalties for products which Apple released during the pendency of the litigation that will have to be accounted for separately.

Both parties may appeal the Final Judgment, in part or in whole, to the Court of Appeals for the Federal Circuit and have 30 days to do so.

 

[cmaier]

OTTAWA, Jan. 24, 2020 /PR Newswire/ – Wi-LAN Inc. (“WiLAN”), a Quarterhill Inc. ("Quarterhill") company (TSX: QTRH) (OTCQX: QTRHF), today provided an update on ongoing litigation.

In a damages-only re-trial in the United States District Court for the Southern District of California commenced on January 21, 2020, the jury rendered its verdict today awarding WiLAN $85.23 million in damages owed to WiLAN by Apple Inc. (“Apple”) for the infringement of WiLAN's US patent Nos 8,457,145 and 8,537,757 (“Patents”).
In a previous related trial verdict rendered on August 1, 2018 in the same court, the jury in that case found that Apple infringed the Patents and awarded WiLAN $145.1 million in damages. In a subsequent hearing after that 2018 verdict, the court affirmed the jury’s finding of infringement but ordered another trial solely on damages which resulted in today’s new verdict.

Following a jury verdict win on January 24, 2020 of $85.23 million in a damages-only re-trial in the United States District Court for the Southern District of California (the "Court"), the Court ruled late yesterday on all post-trial motions and entered final judgment in favor of WiLAN, maintaining the full jury verdict and denying Apple's motions for retrial or lowering the damages award (the "Final Judgment"). The Court also awarded WiLAN an additional amount of $23.75 million in pre-judgment interest. The total award in the Final Judgment stands at $108.98 million and WiLAN is entitled to post-judgment interest from June 16, 2020 until the date this Final Judgment is satisfied. In addition, as indicated in the Court's Final Judgment, there are additional royalties for products which Apple released during the pendency of the litigation that will have to be accounted for separately.

Both parties may appeal the Final Judgment, in part or in whole, to the Court of Appeals for the Federal Circuit and have 30 days to do so.

That’s a different case. It has nothing to do with the 2011 case.

 

[Why-Not-Me]

That’s a different case. It has nothing to do with the 2011 case.

I hate to say this, but I cannot find a single case that Apple has won against Wilan other than the reduction in awards.

 

[Carnegie]

This legal battle has been going on since September 2, 2011 and Apple just keeps dragging it on and on and on and on and on and on and on. That is my point.

OTTAWA, Canada – September 2, 2011 – Wi-LAN Inc. (“WiLAN” or the “Company”) (TSX:WIN) (NASD:WILN), today announced that it has commenced litigation in the U.S. District Court for the Eastern District of Texas, Tyler Division against Apple, Inc., Alcatel-Lucent USA Inc., Dell Inc., Hewlett-Packard Company, HTC America, Inc., Kyocera International, Inc., Kyocera Communications, Inc., Novatel Wireless, Inc., and Sierra Wireless America, Inc. (individually and collectively, “Defendants”).

In its filing, WiLAN claims that these companies have infringed and continue to infringe WiLAN’s U.S. Patent No. RE37,802 (“the ‘802’ Patent”) related to CDMA and HSPA and U.S. Patent No. 5,282,222 (“the ‘222’ Patent”) related to Wi-Fi and LTE.

I hate to say this, but I cannot find a single case that Apple has won against Wilan other than the reduction in awards.

Apple won the case you referred to in the previous post I quoted above, the case in which 6 other defendants (Alcatel-Lucent, Dell, HP, HTC, Novatel Wireless and Sierra Wireless) settled.

Federal Circuit Decision in 2011 Case

Apple also won another case in which HTC and Sierra Wireless had settled.

Federal Circuit Decision in 2012 Case

 

[Why-Not-Me]

Apple won the case you referred to in the previous post I quoted above, the case in which 6 other defendants (Alcatel-Lucent, Dell, HP, HTC, Novatel Wireless and Sierra Wireless) settled.

Federal Circuit Decision in 2011 Case

Apple also won another case in which HTC and Sierra Wireless had settled.

Federal Circuit Decision in 2012 Case

I want to apologize to you and cmaier because neither of these conclusions appeared on the Wilan web-site.

 

[cmaier]

I want to apologize to you and cmaier because neither of these conclusions appeared on the Wilan web-site.

You think Wi-Lan would advertise that their patents were invalid, are easily worked around so as not to be infringed, and if they sue you it might pay to fight back because Wi-Lan's allegations are not always correct?

 

[Why-Not-Me]

You think Wi-Lan would advertise that their patents were invalid, are easily worked around so as not to be infringed, and if they sue you it might pay to fight back because Wi-Lan's allegations are not always correct?

Then you have to question Apple as the current lawsuit with Wilan does not appear on financial statements.

 

[cmaier]

Then you have to question Apple as the current lawsuit with Wilan does not appear on financial statements.

Is it "material" to their finances? $85 million is nothing to Apple. (Assuming it's true -I haven't confirmed that it does not appear on their SEC filings)