Apple ordered to pay $234 million in patent lawsuit: Firm must pay damages for infringing university phone chip design

Apple has been handed a legal bill of almost a quarter of a billion dollars for infringing a phone chip patent from 1998.

A jury in Wisconsin spent three hours deliberating the amount before settling on the figure, which is $165 million (£106 million) less than what was being asked for. 

The damages must be paid to the licensing arm of the University of Wisconsin after a jury found that Apple's A7 chip uses technology designed by the group. 

The licensing arm of the University of Wisconsin recently won its court battle against Apple in which it claimed the firm's A7 chip (pictured with Apple's Phil Schiller in 2013) infringes on a patent filed in 1998. A jury awarded in favour of the university and has told the tech giant to pay damages of up to $234 (£151 million)

The patent in question, called Table based data speculation circuit for parallel processing computer, was awarded to the Wisconsin Alumni Research Foundation (Warf) in 1998. 

The technology improves the speed and efficiency of processors that run popular Apple mobile devices such as iPhones and iPads, extending battery life by as much as two hours.

In the paper work, this patent is referred to as the '752 patent.

As the filing explained: 'Warf is informed and believes that Defendant has been, and currently is, infringing the '752 patent...without license or authority.' 

The original filing was made in January 2014 and initially named the A7 and its related products, which at the time included the iPhone 5s, iPad Air, and iPad Mini with Retina display.

This was later updated to include the iPad mini 3.

Apple's A8 and A8X were then included in the suit following on from the release of the iPhone 6 and 6 Plus. 

Apple introduced its dual-core, ARM-based A7 chip in 2013 with an embedded secure section that stores data for iPhone 5s and iPad mini 3 Touch ID fingerprint systems.

Apple denied any infringement and argued that the patent is invalid. It now plans to appeal the ruling.  

It had previously tried to convince the US Patent and Trademark Office to review the patent's validity, but in April the agency rejected this bid.

Last week, the jury in Madison, Wisconsin was asked to confirm whether the patent was valid, and to consider whether Apple's A7, as well as its A8 and A8X processors violate it. 

It awarded in favour of Warf on both counts.   

The patent dispute involved University of Wisconsin-Madison computer sciences professor Gurindar Sohi, who was in the courtroom for the decision.

Speaking at the ruling, US District Judge William Conley said. 'For Dr. Sohi, I hope you felt that your invention was vindicated,'

'This is a case where the hard work of our university researchers and the integrity of patenting and licensing discoveries has prevailed,' said Carl Gulbrandsen, managing director of the foundation. 

'The jury recognised the seminal computer processing work that took place on our campus.'

The patent in question, called Table based data speculation circuit for parallel processing computer, was awarded to the Wisconsin Alumni Research Foundation (Warf) in 1998. It details technology built into processing chips that makes them more efficient (illustrated)

Last month Warf launched a second lawsuit against Apple, this time targeting the firm's newest chips, the A9 and A9X, used in the more recent iPhone 6S and 6S Plus (pictured), as well as the iPad Pro. This could see the damages increase, and Judge Conley recently said Apple could be liable for up to $862.4 million (£561 million)

Foundation attorney Morgan Chu asked the jury for a royalty of $2.74 per unit, while Apple attorney William Lee said the patent infringement was worth a royalty of only 7 cents per unit.

The number of units involved was only shown to the lawyers and the jury, not to the public.

Last month Warf launched a second lawsuit against Apple, this time targeting the company's newest chips, the A9 and A9X, used in the more recent iPhone 6S and 6S Plus, as well as the iPad Pro.

This could see the damages increase, and Judge Conley recently said Apple could be liable for up to $862.4 million (£561 million) in damages. 

Warf similarly used the patent to sue Intel in 2008, but the case was settled the following year on the eve of trial for an undisclosed suit.