FO° Shorts: An Inventor Now Seeks to Turn the Tables on Apple

British inventor Patrick Racz won a lawsuit against Apple in 2013. The company had apparently stolen technology invented by Racz. Since then, Apple has won in higher courts but Racz is appealing against their decisions and still fighting for justice.

Share this Article

Share article

FO° Shorts: An Inventor Now Seeks to Turn the Tables on Apple

May 16, 2023 06:37 EDT
Check out our comment feature!

“They’ve called me a patent troll but in fact I’m about as far removed from the spectrum as you could possibly get.” So argues British inventor Patrick Racz, who has taken on Apple for copyright infringement. It’s a complex case spanning the past two decades. And it’s taken over his life. But Racz has vowed not to give up.

“They stole my technology and they used it to build the biggest company in the world…. So I will see this through to the end. They’re not going to get away with it.” Remember the days of the iPod, before the iTunes store was invented? That’s when Racz had his lightbulb moment.

A Case of Intellectual Property Theft?

“I’m asked what I invented. I invented particular devices and methods for combining payment functionality, secure downloading, storage and rules for the use of content on portable devices.” In short, Racz invented the backbone of Apple’s iTunes store.

Racz says the problem started when their lead technology partner, a company called Gemplus, “pulled the rug from under our feet” and started claiming the technology as their own. “What I didn’t know at the time was that there were very deep ties and a revolving door between Gemplus and Apple.” The first he knew about Apple using his technology was when it launched its music store in 2003. “That’s when it first got nicked.”

You’d think a patent would have stopped this kind of infringement. But despite applying for a patent back in 1999, it wasn’t granted for a whopping nine years. And by 2008, the genie was out of the bottle.

“I was powerless to do anything,” says Racz. “I had to watch as Apple released product after product after product.” “They took my technology and they created a walled garden. They prevented other device manufacturers from having access to it. And then they taxed everyone at 30%.” It took Racz three years to raise the money to go after Apple.

His company Smartflash filed a lawsuit against Apple in 2013. They went to trial in 2015, and won. “We proved wilful infringement. We proved that Apple stole the technology, we proved that they’d used it extensively.” They also proved that Apple hired a former Gemplus employee as head of digital rights management to implement Racz’s technology. A jury awarded Smartflash $532.9million.

But as Racz puts it, “we just haven’t been paid.”

A Case of Injustice?

Immediately after his victory, Apple released a statement saying that "Smartflash makes no products, has no employees, creates no jobs, has no US presence, and is exploiting our patent system to seek royalties for technology Apple invented. We refused to pay off this company for the ideas our employees spent years innovating and unfortunately we have been left with no choice but to take this fight up through the court system. We rely on the patent system to protect real innovation and this case is one more example of why we feel so strongly Congress should enact meaningful patent reform."

Apple appealed the verdict at both the Patent Trial Appeal Board (PTAB) and the Court of Appeal for the Federal Circuit. This time, it was their turn to win.

“It was rigged,” says Racz. “It transpires that the judges at the Patent Trial Appeal Board were ex-lawyers working for the defendants.” He also claims that the panel of judges at the Court of Appeal for the Federal Circuit was switched at the last minute—to those with close ties to Apple.

“This is no longer a case about patent infringement… It’s about more than that.” “The US patent system has been the subject of regulatory capture. The PTAB is owned, operated and managed by Big Tech. It’s a kangaroo court.”

So where does he go from here? Does he count his losses or double down to fight both Big Tech and the US patents system? You guessed it—both. There isn’t an active case yet but Racz is preparing for more litigation.

Does he ever think about giving up? “Never,” Racz says. “I’ve taken on four of the ten largest companies in the world and the USPTO so you’d think they realize that I don’t give up easily.” He goes on to say: “This is my legacy. And the legacy for my family who’ve suffered through this too. So we’re going to see this through.”

Time will tell if David overcomes Goliath in the 21st century.

The views expressed in this article/video are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.

Join the conversation

Share your perspective

Log in to share your thoughts and take part in the discussion.

FO Exclusive: A Space Revolution Is Imminent — Are We Ready?

October 19, 2026

FO Exclusive: Canada Breaks up With the US and Flirts With the EU

October 18, 2026

FO Exclusive: Can Crown Prince MBS Survive Saudi Arabia’s Emerging Geopolitical Crisis?

October 17, 2026

FO Exclusive: Global Lightning Roundup of September 2026

October 16, 2026

FO Talks: Does This Mean the End for Switzerland’s Neutrality?

FO Live: German Economy Now Faces the China Challenge: What Lies Ahead?

October 07, 2026

FO Talks: Trump’s Dangerous New Playbook

October 03, 2026

FO Talks: Drone Warfare and Foreign Meddling in Sudan’s Devastating Civil War

October 02, 2026

FO Talks: Will Historic AfD Victory Now Sink German Chancellor Friedrich Merz?

September 25, 2026

FO Talks: How Viktor Orbán Lost Control of Hungary

September 22, 2026

FO Live: The Red Sea Crisis — Power Struggles in Yemen and Sudan

FO Talks: The Fight For Answers — Investigating Black Deaths

September 16, 2026

FO Talks: Lula vs Another Bolsonaro — Brazil’s 2026 Election

FO Exclusive: The Looming Global Food Crisis — How Hunger and Famine Will Trigger Instability

September 14, 2026

FO Exclusive: Global Economy Teetering on Brink of Major Crisis

September 12, 2026

FO Exclusive: Lightning Roundup of August 2026 Writeup

September 11, 2026

FO Talks: How to Promote Interfaith Unity and Counter Extremism

September 09, 2026

FO Talks: Making Sense of the AI Boom

September 08, 2026

FO Explainers: The Donroe Doctrine — The Future of the Western Hemisphere?

September 07, 2026

FO Talks: Making Sense of the Hidden Gold Mines in e-Waste

September 02, 2026

 

Fair Observer, 461 Harbor Blvd, Belmont, CA 94002, USA