British inventors seek to bite Apple for $18bn in patent war

As a plumber tycoon Patrick Racz had become accustomed to deluges. But circumstances led to a very different kind of drenching, sitting in his local park in the rain contemplating the demise of his business during the dotcom crash. “I lost it all. I had young children. I felt embarrassed and upset at having let down my family. “I couldn’t face them,” he remembers.

His lowest point came right before a battle over a patent with Apple, which would change his life. He is still at odds with Apple and US courts nearly two decades later.

He is an interesting figure. A British inventor, well-established and credible, who achieved wealth and fame in the 1980s. But he’s clearly bruised and enraged after years of a David and Goliath battle that dominates his reputation online and makes onlookers wonder whether Apple or Racz are in the right.

Racz is the inventor of the Triflow, the first three-way mixer in the world. The system was based on a standard sink mixer, but with an extra waterway to provide filtered water along with hot and cold. In 1998, a “multimillion-pound sale” sealed his profits after expanding to 45 countries.

He says that his second chapter has turned sour, as Apple’s iOS store usurped his dotcom-era company. He claims that the US corporation has stolen his system.

Racz, who is opening up about the emotional cost for the first-time, says: “I went through an intense depression.” “I am ashamed to admit that I drank alcohol. “I was lost in a fog of time, and I could not remember much.”

Patents that were filed in 1999, and granted almost a decade later gave him “a new lease of life”. This triggered a massive court battle which is still ongoing as he targets damages of $18bn.

Apple has no problem with patent disputes. A standoff between Apple and medical technology company Masimo resulted in the suspension of sales for Apple’s Series 9 smartwatches and Ultra 2 before Christmas. Racz may have won some rounds of court against Apple, but that does not guarantee a final victory. There is only one certainty: the road ahead will be winding, long and expensive.

Racz was born and raised on a strawberry-farm in Jersey. He spent most of his career working in sales. After selling his tap business Avilion, Racz pursued the digital market just as Napster had revolutionized the music industry through illegal filesharing.

Racz filed patents quickly for his anti-piracy solution Smartflash and the accompanying systems that allow secure downloads and payments. He negotiated deals with manufacturers and retailers, including Gemplus, the French company that makes sim cards. Britney Spears, the pop star, signed on as a brand spokesperson.

In the aftermath of 9/11 and the dotcom collapse, Spears, Gemplus, and Apple pulled out. Racz claims in court that Gemplus, also an Apple partner, claimed the product to be its own.

He was enraged to see Steve Jobs, the late Apple CEO, “soak in the praise” of a series products that he claims he invented. This began with iTunes in 2003. He received patent approval in 2008. In 2015 he won $533m damages after suing Apple. Racz said it was the largest jury award to a private innovator.

Apple’s appeal in commercial court reversed the decision of the court. Since then, he has lost his appeals but has promised to continue fighting. In recent years he has been the target of a large backlash among Apple fans online, including death threats emailed to him by unknown individuals.

“Those things begin to hurt – when your children are told they should be burnt at the stake, and you should beheaded for doing what you do. My child was bullied by kids who said: “Your dad says he invented that, but he didn’t, he stole it. Apple invented it.” Racz tells Racz over coffee that his father is a liar. He is tall, burly, and has a short, dark crop of hair. His anger is still visible as he tells the story.

Racz’s most recent battle is with the US Patent Office. He is suing them for refusing to release uncensored documents and emails related to his intellectual properties. He wants to prove that the panels of judges are intentionally made up of ex-lawyers who are close supporters of Apple. Racz claims that Apple has used “wealth” and “power” to influence US patent laws.

Apple was asked for comment and pointed to an earlier statement from 2015 that stated: “Smartflash has no products, no employees, no jobs created, no US presence, is attempting to exploit our patent system in order to obtain royalties on technology Apple invented.”

We refused to pay this company off for the ideas that our employees spent many years innovating. Unfortunately, we were left with no other choice than to fight this battle through the courts.

Gemplus has not responded to a comment request.

He is also a supporter of Regent Sounds in central London, Denmark Street, which was once used as a recording studio by the Rolling Stones. has been involved in its own battle with the landlord who’s behind the massive development by Outernet, the media venture.

His primary mission is to tell his story. He has written Smartflash an autobiography and claims to have interest from publishers. Simon Morris, former chief creative officer of Amazon, and man behind Amazon Prime Video has agreed to sell rights to a film about Racz. He is now pitching this project to studios.

Racz is still focused on his legal battle, which has the backing of private investors, who will share any wins. “They say that what doesn’t hurt you makes you stronger. It’s made me more determined.”