Tech giant loses patent lawsuit, could pay $862 million in damages

Apple could be on the verge of facing up to $862 million in damages after a US jury found the iPhone maker used technology owned by the University of Wisconsin-Madison licensing arm without permission in many of its devices on Tuesday.

The jury in Madison, Wisconsin also said that the patent, which improves chip efficiency, was valid and s such the trial will now on to determine just how much Apple could be owing in damages.

The Wisconsin Alumni Research Foundation (WARF) sued Apple in January 2014 alleging that the most valuable company in the world had infringed on its 1998 patent for improving chip efficiency.

The jury is also looking to determine if Apple's A7, A8, and A8X proessors, which are found in the iPhone 5s, iPhone 6, and iPhone 6 Plus, as well as many versions of the iPad, violate the patent.

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Apple has denied any infringement, arguing that the patent is invalid, according t the court papers filed in the case.

Apple had also previously tried to convince the US patent and Trademark Office to review the validity of the patent, but the agency rejected the bid in April.

The trial will now proceed in three phases: liability, damages, and whether Apple willfully infringed the patent, which could lead to further penalties.

WARF had used the same patent to sue Intel Corp. back in 2008, but the case was settled the following year a day before trial.