The plaintiff claimed that Apple infringed three patents related to “data storage and managing access through payment systems” and cited their use in apps like Game Circus LLC’s Coin Dozer and 4 Pics 1 Movie. Game companies who used the same technologies settled out of court with Smartflash earlier.
Apple said that it saw no reason to pay royalties on the price of a phone when the dispute was over a single feature. As representing lawyer Eric Albritton put it, “People do not buy cell phones for the sole purpose of using apps.”
Smartflash originally sought $852 million in damages, arguing that it was entitled to a percentage of sales of Apple products that access iTunes. The company doesn’t sell anything itself and makes money only by licensing the seven patents it holds. It’s also suing Samsung and Google, and has previously taken Amazon.com to court as well.