Apple is ordered to pay $505 million to Texas-based Optis Cellular Technology after losing a long-term patent dispute in the London Court of Appeals. This case focuses on using 4G patents on Apple devices, including iPhones and iPads.
It was launched in 2019 when Optis sued Apple in the UK, claiming that the Tech giant used a patent that Optis deemed essential to the 4G standard without a proper license. In 2023, the London High Court initially found that Apple owed $56.43 million plus interest on both past and future use. Optis pushed back and insisted the amount was too low.
On Thursday, the Court of Appeal was with Optis’ side. In a partially compiled ruling, the court increased the amount to $505 million covering the use of Optis’ patents from 2013 to 2027. The total does not include interest.
This is not the first break-in Apple has used Optis from Wireless Patents. When it first reported the case in August 2021, a US court ordered Apple to pay Optis $300 million to infringe patents related to iPhone technology. It followed an earlier verdict in 2020, in which federal ju apprenticed Apple to be liable for $506 million for infringing Optis, Panoptis patent management and LTE patents held by an underdeveloped planet. These patents were used on iPhones and other LTE-enabled devices.
The ruling is based on the global use of Apple’s technology and relates to the Frand license (short of “fair, reasonable, and non-discriminatory”), the term used in disputes including standard patents.
Apple hasn’t let it go without a fight. A spokesperson said the company was “disappointed by the decision and plans to appeal,” Reuters reported.
“Optis doesn’t manufacture products and their only business is to sue companies using the patents they buy,” the spokesman added. “We will continue to oppose their attempts to extract unreasonable payments.”
Optis welcomed the court’s decision. A spokesperson said the ruling “has made meaningful progress towards correcting an earlier verdict that is clearly flawed and confirming the true value of the patent on Apple devices.”
“We will continue to ensure fair compensation for Optis’ intellectual property, which enables high-speed connectivity for millions of devices around the world,” the company said.
This is just the latest development of a long-standing standoff between the two companies. Apple has pushed back what it takes to use industry-standard technology, but companies like Optis argue that compensation should reflect full market value.
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