Apple-Broadcom Win $1.1B CalTech Patent Trial

Apple Inc AAPL and Broadcom Inc AVGO persuaded a U.S. appeals court to throw out a jury verdict requiring them to pay $1.1 billion, Reuters reports.
A Los Angeles federal jury found in 2020 that millions of iPhones, iPads, Apple Watches, and other devices using Broadcom chips infringed Caltech's data-transmission patents.
A two-tier damage award of damages of $270.2 million against Broadcom and $837.8 million against Apple that involved different royalty rates from each company is "legally unsupportable," the U.S. Court of Appeals for the Federal Circuit in Washington ruled, Bloomberg reports.
The court also affirmed the jury finding that Apple and Broadcom infringed two CalTech patents but ordered a new infringement trial on a third patent.
Apple is a significant purchaser of Broadcom's wireless chips, and the companies agreed in 2020 to continue their relationship into 2023.
Price Action: AAPL shares traded lower by 0.47% at $172.12 on the last check Friday.