A PYMNTS Company

Apple Wins Court Ruling On $308.5M Patent Suit

By  |  August 8, 2021

Apple persuaded a federal judge to throw out a US$308.5 million jury verdict it lost to a privately-held licensing firm for infringing a patent associated with digital rights management.

In a Thursday night, August 5, decision, US District Judge Rodney Gilstrap said Personalized Media Communications intentionally delayed filing its application with the US Patent and Trademark Office, hoping to obtain a larger payout.

“This court takes very seriously the prospect of disturbing the unanimous verdict of a duly empaneled jury,” but PMC’s “deliberate strategy of delay” was a “conscious and egregious misuse of the statutory patent system,” Gilstrap wrote.

PMC, based in Sugar Land, Texas, claimed in its 2015 lawsuit that the FairPlay software used in Apple’s iTunes service and App Store to decrypt movies, music, and apps infringed its patent obtained in 2012.

But the judge, who sits in Marshall, Texas, accepted Apple’s defense of “prosecution laches,” which can block a patent holder from enforcing a patent after an unreasonable and unexplained delay. Gilstrap said PMC’s delay lasted many years.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.