Apple Ordered to Pay $533 Million for Patent Infringement in iTunes

Apple has been ordered to pay $532.9 million after a federal jury found its iTunes software infringed three patents owned by Texas-based patent licensing company Smartflash.

Though Smartflash had been asking for $852 million in damages, the verdict was still a costly blow for Apple. After deliberating for eight hours in the US District Court for the Eastern District of Texas, the jury said that Apple not only used the Smartflash patents without permission, but did so willfully. The patents are related to accessing and storing entertainment software. Apple suggested the outcome was another reason why reform is needed in the patent system to curb litigation by companies that do not make products themselves, such as Smartflash. “We refused to pay off this company for the ideas our employees spent years innovating and unfortunately we have been left with no choice but to take this fight up through the court system,” an Apple spokeswoman said.