Apple's in trouble. The company was judged guilty of infringing a University of Winconsin-Madison patent and could face up to $862 million in damages.

On Oct. 13, the jury in Madison found that Apple's A7, A8 and A8X processors, which are used in the iPhone 5s, 6 and 6 Plus, as well as several versions of the iPad, used unlicensed technology owned by the Wisconsin Alumni Research Foundation (WARF).

To determine how much Apple owes in damages, the trial will proceed in three phases: liability, damages and finally, whether Apple infringed the patent willfully, which could lead to graver consequences. 

Apple could be liable for up to $862.4 million in damages, according to a recent ruling by U.S. District Judge William Conley, who is presiding over the case.

Apple declined to provide a reaction on the verdict. In an email, WARF told the media that it does not comment on ongoing litigation. 

The WARF versus Apple Inc. case in the U.S. District Court for the Western District of Wisconsin (No. 14-cv-62) began in January 2014. 

"In this patent lawsuit, plaintiff Wisconsin Alumni Research Foundation ('WARF') alleges that defendant Apple Inc. infringes U.S. Patent No. 5,781,752 (the '752 patent')," states the court document.

According to the legal papers, the California-based phone maker denied any infringement and argued the patent is invalid. It convinced the U.S. Patent and Trademark Office to review the patent's validity. The bid was rejected by the agency in April.

"Defendant and counter claimant Apple, Inc.'s motion for summary judgment is denied as to its counterclaims and defenses of anticipation by Steely and indefiniteness, and denied as to plaintiff's willful infringement," states the court.

In September, WARF filed a second lawsuit against Apple, claiming the technology in A9 and A9X processors used in Apple flagships iPhone 6S and 6S Plus, as well as in the iPad Pro, were also "borrowed" from the academic institution.

Back in 2008, WARF sued Intel on similar grounds, although the case was settled out of court on the eve of the trial. 

Photo: Andy Perkins | Flickr