Apple Inc. hit with a US$308.5 Mn fine for DRM patent infringement

2 min read | March 23, 2021 01:03 PM AEDT | By Team Kalkine Media

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Apple Inc. hit with a US$308.5 Mn fine for DRM patent infringement

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Summary

Global tech giant Apple Inc. to pay Personalized Media Communications for the infringement of a patent related to DRM (digital rights management).

The jurors asked Apple to pay a running royalty depending on the sales or usage of the product.

Besides, PMC has infringement cases pending against companies, including Amazon, Google, and Netflix.

US federal panel appealed that Apple Inc (NASDAQ:AAPL) needs to pay almost US$308.5 million for infringement of a patent related to digital rights management (DRM).

On 19 March 2020, the jurors asked the Cupertino, California-headquartered technology behemoth to pay a running royalty to Personalized Media Communications LLC (PMC) based on product sales or service.

Source: © Niroworld | Megapixl.com

Let us dive deeper and discuss in detail-

According to media reports, the lawsuit was initially filed in 2015 by Personalized Media, claiming that Apple’s iTunes service had infringed seven patents of PMC. However, the iPhone maker challenged the patent’s validity at the Patent Trial and Appeal Board.

The US$308.5 million infringement includes royalties since the first infringement of the patents. Besides, the jurors ordered the Company to give current royalties to PMC for utilizing the patent on its products.

Source: © Jordanstern | Megapixl.com

In a statement, Apple Inc. said that it was disappointed with the ruling and would appeal, the Company also added-

The Texas-based licensing firm, PMC, has infringement cases pending against companies including Netflix Inc, Alphabet Inc's Google (NYSE:GOOGL), and Amazon.com Inc (NASDAQ:AMZN).

Personalized Media Communications had charged Apple claiming the tech giant infringed its patent having technology including FairPlay. The technology is used to distribute encrypted content from its App Store, Apple Music applications and iTunes.

Moreover, as per the calculation done by PMC, Apple needs to pay US$240 million in royalties. After a five-day trial, the jurors ordered the Company to pay a running royalty depending on usage or sales.

PMC’s lawsuits against other tech multinationals

According to Reuters, Texas, US-based Personalized Media Communications has similar lawsuits against other tech giants, including Google, Amazon, and Netflix.

Google and its YouTube service won a patent trial for various patents submitted by Personalized Media Communications in November 2020.
A case against Netflix is awaiting in New York.

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