Patrick Racz Demands $18 Billion In Damages From Apple

In 2015, British inventor Patrick Racz was awarded $533 million in damages by Apple by a US court, but the decision was overturned. In the bitter patent war, Racz is now demanding $18 billion.

Two decades of litigation

This is reported by Spiegel Online. According to the report, Patrick Racz, formerly known as a plumber tycoon, is again trying to claim damages from Apple. This includes iTunes, the Apple Store, and their payment processing.

Patrick Racz has been at loggerheads with Apple and the US courts for almost two decades and has already won several rounds in court against Apple.

Racz owns patents for his anti-piracy alternative Smartflash and the associated systems that enable payments and secure downloads. He signed deals with retailers and manufacturers, including Gemplus, a French SIM card manufacturer. Pop star Britney Spears appeared as a brand ambassador.

Racz said he discovered that Gemplus, also an Apple partner, was passing off the product as his own. Then, late Apple CEO Steve Jobs took credit for a series of products that, according to Racz, were based on his patents, starting with iTunes in 2003.

Compensation obtained

In 2015, he sued Apple in Texas for $533 million in damages and won. According to Racz, this was one of the highest compensations for a private inventor – but he never got the money.

The court’s decision was later reversed: first by a ruling by the US Patent Trial and Appeal Board that invalidated his patents, and then by an appeal by Apple in the commercial courts.

He has since lost his appeal but intends to fight on. Racz’s latest battle revolves around the US Patent Office, which he is suing for refusing to release uncensored emails and documents relating to his intellectual property.

He is trying to prove that the panel of judges was deliberately filled with former lawyers and close supporters of Apple. Racz argues that the company used its “wealth and power” to influence the US patent system. Apple, however, denies all allegations. It is still unclear how the current case will turn out.

In any case, Racz is doing very well at marketing his story. He is currently trying to sell his autobiography as a documentary to Amazon Prime Video.