How Apple lost $533 million to an 8th-grade dropout patent troll

This is an even better article on the subject, and contains links to the jury verdict and the patents

Smartflash LLC is a company that operates out of a tiny office suite in Tyler, Texas. It has no employees or products and no assets except for a handful of patents—but it may be getting a whole lot of cash. A jury verdict (PDF) that came out late yesterday orders Apple to pay the company $533 million for infringing three of its patents.

[link to arstechnica.com]

Last Edited by Philligan on 03/01/2015 09:14 AM

Apple has been sued multiple times in patent infringement

It may be the case where Apple makes more money then the cost of the fine.


Like a restaurant in LA that refused to stop smoking indoors. The business they received was so great they could pay the monthly fine for allowing people to smoke in the restaurant.

They pay the fine and still make a profit.

The Ars link is more informative. It would be interesting to see the entire transcript.

If Racz had invented, refined and patented this technology, he's definitely not a "patent troll". Apple has made it a habit to take existing patents, modify them on superficial levels and try to defend suits that way.

They can claim they put time and money in, but if what his lawyer claims is true they still have to give credit (and cash) to the person that owns the idea itself.

"Racz, who lives on the English Channel's Isle of Jersey, first filed for his patents in the late 1990s."

From link.

Same tax haven this site uses?

Good luck collecting.

It will be appealed.

Clear patent troll.

And the dropout farmer boy lived happily ever after, in his luxury mansion with heated marble floors and crystal chandeliers, never having to worry about another day of work in his life.

yea he could now afford this English Country Stately Home, whilst barely making a dent in his monetary fortune,.

Tax havens have thousands of companies file in their state. Some towns have thousands of buisnesses and only few hundred residents.

It is nearly impossible to know if you are violating someones intellectual property these days. You are just creating hardware and software on the fly as fast as you can go.

These patent trolls go after the biggest company to get the license. If they win, the all the others that are violating have to pay a license. If Apple is first, the others have to pay...

Apple ripped off the UI from Xerox too....

The patent system is broken...

millionare troll...

yeah they were sued recently over macbooks dropping dead and now they have implemented a repair program.

And they have really made quite a few software screwups recently.

Not looking good for Apple.

JP Morgan invented this move in the 1880s.

Patent attorneys bread and buttah.

Just like the ambulance chasers.

How does one become a patent troll. I wanna do that!

Come up with an idea now, patent it with no intention on doing anything with it other than sitting on it for an extended period of time.....oh wait, don't do any of this!

There's a "podcast" patent troll, gawd. wtf

You know what?

GOOD FOR HIM!

I hope he enjoys his life now.

apple has the patent on rounded corners!!!

I agree, Apple make a billion dollars a Day...

Smartflash is the very definition of a patent troll, settlements and awards from its seven patents providing its only form of income. The company makes no products and provides no services.