Apple, Broadcom Reach 'Potential Settlement' With Caltech in WiFi Chip Patent Infringement Lawsuit

The California Institute of Technology has reached a "potential settlement" in a high-stakes patent infringement lawsuit against Apple and Broadcom over Wi-Fi chips, according to a Thursday filing in federal court.

Caltech previously won a verdict of more than $1.1 billion (nearly Rs. 9,100 crore) from Apple and Broadcom in the case that was later overturned.

The potential settlement was disclosed in a court document filed in US District Court in Los Angeles without further details following a telephone conference. It was unclear if the agreement involved both Apple and Broadcom.

Representatives for Caltech, Apple, and Broadcom did not immediately respond to requests for comment. The court ordered the parties to file a joint status report by August 18.

Pasadena, California-based Caltech sued Apple and Broadcom in 2016, alleging that millions of iPhones, iPads, Apple Watches and other Apple devices using Broadcom chips infringed its wireless communication patents. A jury ordered Apple to pay $837.8 million (nearly Rs. 6,932 crore) and Broadcom to pay $270.2 (nearly Rs. 2,235 crore) million in patent-infringement damages in 2020.

A US appeals court overturned the award last year and ordered a new trial on damages, finding the amount was "legally unsupportable." A trial that had been scheduled to begin in June 2023 was postponed indefinitely in May.

Caltech told a Texas federal court on Tuesday that it had settled a related lawsuit against Samsung. The university has also sued Microsoft, Dell and HP over its Wi-Fi patents in cases that are pending. 

© Thomson Reuters 2023