CalTech Case Underscores Billion-Dollar Patent Awards’ Fragility

The Federal Circuit’s decision to throw out the California Institute of Technology’s billion-dollar patent award against Apple Inc. and Broadcom Inc. highlights the difficult road patent owners face after winning giant damages at infringement trials.

The U.S. Court of Appeals for the Federal Circuit ordered a new damages trial in a case CalTech brought over Wi-Fi technology. A jury in 2020 told Apple to pay $838 million in royalties, while Broadcom, its chip supplier, was on the hook for $270 million.

CalTech’s damages theory was “legally unsupportable,” the Federal Circuit said.

It’s the latest high-dollar patent award to fall at ...