This article [1] I found from 2017 goes into a tiny bit more detail:
Smartflash was founded in 2000 by inventor Patrick Racz, who obtained several patents on a system for storing data like songs, videos and games and accessing that data through electronic payments systems. Racz was unable to commercialize the technology and Smartflash sells no products of its own.
And then on the connection with Apple:
Smartflash’s complaint alleged that Racz has discussed his ideas in 2000 with a technologist who later became a senior director at Apple.
The Guardian however states:
But in the fallout from 9/11 and the dotcom crash, Spears and Gemplus pulled out, and Racz says in court that Gemplus – also a partner to Apple – then claimed the product as its own.