What Happened: Jawbone, which went bankrupt in 2017, has sued the two tech giants over the noise cancellation technology in their earbuds, smartphones and smart home devices, as per Bloomberg.
Jawbones claims it was the first to develop the now popular noise-canceling technology which Apple now uses in its Airpods. The now-defunct company originally owned the patents and has filed the suits in federal court in Waco, Texas, a popular destination for patent-friendly judges and juries, the report noted.
Why It Matters: Jawbones, once seen as a rival to now Google-owned Fitbit Inc, was involved in a long legal battle with the latter which led to the now-bankrupt company liquidating its assets. Fitbit was bought by Google for $2.1 billion.
The wearable technology space is a hotly contested space with multiple players including Apple, Google, Samsung, Fitbit, Garmin Ltd. (NASDAQ:GRMN) and more vying for the rapidly growing segment.
Price Action: Apple shares closed 0.67% higher at $146.83 on Thursday. Alphabet Inc Class C shares closed 0.63% higher at $2,836.53.