Caltech has successfully reached a settlement in its long-standing patent lawsuit against Apple (NASDAQ:AAPL) and Broadcom (NASDAQ:AVGO), according to federal court filings on Thursday. The lawsuit, which began in 2016, revolved around alleged infringement of Caltech's wireless-communication patents by various Apple devices integrated with Broadcom's chips.
Originally, Caltech was awarded $1 billion in 2020, however, this amount was later overturned as "legally unsupportable" by an appeals court. The recent settlement's details remain undisclosed but it is believed to encompass a licensing agreement. This agreement would permit Apple and Broadcom to utilize Caltech's patented technology, ensuring continued product development and sales that are expected to benefit consumers.
The lawsuit's dismissal 'with prejudice' prevents it from being refiled in the future. Notably, both parties hinted at a potential settlement as early as August, without providing further details. The trial, initially scheduled to begin in June, has been indefinitely postponed since May.
In related news, Caltech has also recently settled a similar patent dispute with Samsung (KS:005930). However, the institution remains actively involved in ongoing patent lawsuits against other tech giants including Microsoft (NASDAQ:MSFT), Dell (NYSE:DELL), and HP (NYSE:HPQ).
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