Apple Must Pay Over $700 Million in Major Patent Damages Case

[MacRumors]

Apple has today been ordered to pay more than $700 million to the Texas-based cellular technology company Optis in a landmark UK patent ruling (via ipfray).

In London, the England and Wales Court of Appeal today ruled that Apple must pay a lump sum of $502 million to Optis Cellular Technology LLC for the use of standard-essential 4G patents in iPhones and iPads over a 14-year period spanning from 2013 to 2027. The decision marks a dramatic increase from the $56.43 million originally awarded by the High Court in 2023. In addition to the revised damages figure, the new judgment also includes interest, which could exceed $200 million, bringing Apple's total liability in the case to more than $700 million.

The dispute centers on whether Apple breached its obligations to license the patents on FRAND (fair, reasonable, and non-discriminatory) terms, which are required under international standards for the use of essential wireless technology. Optis is a Texas-based entity that does not manufacture products but holds and licenses intellectual property. It first raised the case in London in 2019.

Apple had previously argued that the royalty rates proposed by Optis were excessive and not compliant with FRAND principles. In a statement provided to Reuters, Apple said "We are disappointed by this decision and plan to appeal."

Optis makes no products and their sole business is to sue companies using patents they buy. We will continue to defend against their attempts to extract unreasonable payments.

The ruling is believed to be one of the largest patent damages awards in UK history. According to legal filings, Apple had previously expressed concern that an unfavorable royalty ruling could constitute grounds for exiting the UK market. While the company later walked back that position, the $700 million judgment moves the case significantly closer to that earlier worst-case scenario than had been anticipated following the High Court's original determination.

Apple can still petition the UK Supreme Court to review the case, but such appeals are usually granted only in limited circumstances, such as significant points of law or matters of public interest.

Update: Optis has issued a statement to MacRumors regarding the ruling:

We're pleased the UK Court of Appeals has recognized and corrected a clearly flawed prior ruling and has made meaningful progress toward affirming the true value of our patents to Apple devices. In addition to ordering payment that exceeds $700 million with interest and fees, the Court has judged that "Apple's significant negotiating strength leads some parties to agree lower rates than would be agreed between a willing licensor/willing licensee" thereby gaining an unfair advantage. We will continue to ensure fair compensation for the Optis intellectual property that enables high-speed connectivity for millions of devices around the world."

Article Link: Apple Must Pay Over $700 Million in Major Patent Damages Case

 

[TechWhisperer]

Apple’s recent trajectory reminds me of a plane losing altitude. Apple is going down in slow motion.

 

[turbineseaplane]

I think I found the problem

 

[Tannerozzy]

Why is the UK ruling on a patent dispute between two American companies?

 

[turbineseaplane]

Why is the UK ruling on a patent dispute between two American companies?

Optis is a Texas-based entity that does not manufacture products but holds and licenses intellectual property. It first raised the case in London in 2019.

 

[russell_314]

Optis is a Texas-based entity that does not manufacture products but holds and licenses intellectual property.

This is one way in China has an advantage. They don’t have to deal with patent trolls

 

[Chet-NYC]

Another patent troll gets a payday.

 

[Gengar]

Tough week for Apple, huh?

 

[NightFox]

Optis is a Texas-based entity that does not manufacture products but holds and licenses intellectual property. It first raised the case in London in 2019.

That doesn't leave me any the wiser. How do UK courts have any jurisdiction over this?

(and your quote-only post was a nightmare to quote)

 

[I7guy]

So the company filed suit in the UK? Because they thought they could win in the UK, but not the US?

 

[GMShadow]

According to legal filings, Apple had previously expressed concern that an unfavorable royalty ruling could constitute grounds for exiting the UK market.

Given that it’s a rapidly shrinking market with a bleak future, and the government there is increasingly hostile toward American enterprises and is growing more totalitarian in their demands (such as demanding encryption backdoors)…it might be time to consider it.

 

[nt5672]

That doesn't leave me any the wiser. How do UK courts have any jurisdiction over this?

(and your quote-only post was a nightmare to quote)

US companies routinely file for patents in foreign countries. US companies routinely violate patents in foreign countries.

I don't know if this is the case, but I don't see any other explanation. If it is expect more lawsuits.

 

[JippaLippa]

OOF...

700 Million starts to be quite the fine, even for Apple.

 

[iPhoneFan5349]

This is one way in China has an advantage. They don’t have to deal with patent trolls

I don’t know about that. So yes, sure, they don’t produce anything. How come they have the patent for the idea? How come they have it and nobody else has it? My guess would be they invented it and apple copied that invention.

 

[Expos of 1969]

Another patent troll gets a payday.

Yes and nothing wrong with that outcome. It matters not at all who owns a patent and what they choose to do with it. What matters is if a company who does not own the patent illegally infringes on it. Apple under Cook has quite a history of doing just this so pay up Tim.

 

[victorvictoria]

Apple will never pay Optis $700 million. They will countersue, and the judgement will either be overturned, or will be settled for way less than half that. Optis doesn't have the money to fight a protracted legal battel with Apple. Apple has the money to fight a protracted legal battle with Optis.

 

[neuropsychguy]

Another patent troll gets a payday.

Trolls are trolling, but Apple is appealing. Hopefully the appeals process will reverse this decision.

Edit: Optis Cellular Technology LLC is a subsidiary of PanOptis. While the term "patent troll" is a pejorative one, PanOptis falls squarely in that category of companies. They purchase patents and then seek to license them out and sue for patent infringements. In PanOptis's situation, they offer a service to the original patent creators to license them as a 'service' and then share some proceeds (depends on the agreement), but they don't produce anything and generally do not benefit other companies or consumers. The idea of these companies can be a good one (they can be an outsourcing of the management of the patents), but in practice, much of their revenue -- if any -- comes from lawsuits with the occasional settlements or judgments. This process turns most into predatory companies. Think of them as something like a payday loan company. The idea might be positive (helping people with poor/no credit or no banking accounts), but the end result is rarely so.

Optis might be less predatory than others (from what I could tell they came across as 'less bad' than some of the other similar companies out there), but companies like this prey on a messy and antiquated patent system to make money. If they were a company like Masimo with actual products, my comment would be different.

One last comment. How could we improve this? One option is to require lawsuits like this to be successful in at least 2/3 different jurisdictions -- one picked by the prosecuting side, one by the defense side, and one picked by an fully independent arbitrator.

 

[GBOAC]

That doesn't leave me any the wiser. How do UK courts have any jurisdiction over this?

(and your quote-only post was a nightmare to quote)

See para 1 of the judgment which explains the background: https://www.bailii.org/ew/cases/EWCA/Civ/2025/552.html

 

[victorvictoria]

I think I found the problem

Yeah, Tim Cook is the problem. When he took the reins at Apple on August 24, 2011, its market capitalization was $350 Billion. Today, May 1, 2025, Apple's market capitalization is $3.2 Trillion. Please tell me what the problem is.

 

[russell_314]

I don’t know about that. So yes, sure, they don’t produce anything. How come they have the patent for the idea? How come they have it and nobody else has it? My guess would be they invented it and apple copied that invention.

I don’t know the specifics of these patterns, but sometimes patent trolls will patent so many random things hoping someone decides to infringe on one. There’s people that start corporations just to do this. It’s very profitable if you get lucky and you can make millions if not billions off of it.

 

[Aeronauts]

Tim Cook seems to think Apple are above the law. They are not and should follow the rules like everyone else.

 

[russell_314]

Yes and nothing wrong with that outcome. It matters not at all who owns a patent and what they choose to do with it. What matters is if a company who does not own the patent illegally infringes on it. Apple under Cook has quite a history of doing just this so pay up Tim.

There is a lot wrong with that. You may not like Apple, but it could happen to your favorite company or even if you start a company it could happen to you. These people don’t invent anything. They just make a bunch of patents of known ideas hoping someone will infringe on one.

 

[russell_314]

So the company filed suit in the UK? Because they thought they could win in the UK, but not the US?

It’s called gaming the system. Unfortunately it’s very common even in the USA.

 

[dominiongamma]

Another patent troll gets a payday.

If Apple was smart, they would’ve won in court

 

[Aeronauts]

Given that it’s a rapidly shrinking market with a bleak future, and the government there is increasingly hostile toward American enterprises and is growing more totalitarian in their demands (such as demanding encryption backdoors)…it might be time to consider it.

Load of rubbish. The U.K. has been trying for years to get a free trade agreement with the US. Nobody is targeting Apple but if they keep breaking the law they will keep getting sanctioned. The courts are independent of government in the U.K.