The UK Court of Appeal has mandated that Apple pay Optis Cellular Technology $502m for a global FRAND (fair, reasonable, and non-discriminatory) licence to use its 4G standard essential patents (SEPs). Optis, based in Texas, initiated legal proceedings against Apple in London in 2019, alleging that the tech giant utilised its patents, which are deemed critical to technological standards like 4G.
Optis holds a portfolio of patents worldwide that are integral to 3G and 4G LTE technologies, including key features in smartphone and tablet interfaces, core chipsets, modulation, battery management, antenna, and power management systems. In 2023, London’s High Court initially ruled that Apple should compensate Optis with $56.43m plus interest for past and future sales over a specified timeframe. However, Optis contested this amount, arguing it was insufficient, and subsequently appealed the decision in February and March.
The Court of Appeal, in a partially redacted ruling, determined that Apple should instead pay a lump sum of $502m, excluding interest, covering the period from 2013 to 2027. This sum pertains to a global licence for Optis’ patents.
Apple plans to appeal court ruling
“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,” said an Apple spokesperson expressing disappointment with the decision and indicating plans to appeal.
“Corrected a clearly flawed prior ruling and has made meaningful progress toward affirming the true value of our patents to Apple devices,” said Optis spokesperson, welcoming the ruling. “We will continue to ensure fair compensation for the Optis intellectual property that enables high-speed connectivity for millions of devices around the world.”
The ruling marks the latest development in the ongoing legal confrontation between Apple and Optis over the terms for using Optis’ patents under FRAND conditions.
Last month, a UK tribunal determined that a legal dispute between the UK government and Apple over data privacy will proceed without secrecy. The dispute involves the government’s request for access to data safeguarded by Apple’s Advanced Data Protection (ADP) system, sought by the Home Office under the Investigatory Powers Act.
Apple contends it cannot provide such access, as only users can access their encrypted data. The company has raised concerns that introducing a “backdoor” could expose user data to exploitation by malicious actors, including hackers and criminals.
The UK government’s request has encountered opposition from privacy advocates, civil rights groups, and some US lawmakers. Earlier this year, Apple withdrew ADP from the UK market and subsequently filed a lawsuit against the government, with proceedings held at the Investigatory Powers Tribunal (IPT). The government argued that public disclosure of the case might jeopardise national security, asserting that revealing certain details could undermine its efforts to combat serious crime. Consequently, it sought to keep specific aspects of the case confidential.
Read more: UK court declines government’s bid for secrecy in Apple encryption case
