Apple has been ordered to pay a $502 million lump sum payment by UK courts for infringing on patents owned by Optis Cellular Technology LLC, based out of Texas. When you include interest and fees, Optis estimates the total sum to be in excess of $700 million. This particular company is not an aggrieved innovator, but instead what is referred to as a “patent troll.” That’s a company that buys up niche patents with the specific intent to seek damages for infringement from lucrative defendants like Apple, and it’s not their first time being awarded damages from the Cupertino giant.
This lawsuit was originally filed through London courts in 2019 over patents governing cellular technology, including 4G, that Optis says was improperly used in iPads and iPhones. In 2023, London’s High Court ruled in Optis’ favor and ordered Apple to pay just over $56 million plus interest to settle the dispute, inclusive of past and future sales that featured the offending tech. Optis successfully argued that this was far too low a sum, top to the half-a-billion-dollars in damages ordered today.
The iPhone maker has found itself in court over patent infringements time and time again in the past , not only with patent trolls, but also fellow industry stalwarts. The ability for enormous tech companies to (allegedly) infringe on design or utility patents and pay pennies on the dollar for the damage done years later seems to be a feature, not a bug.
Apple has unsurprisingly responded by promising to appeal the court’s decision, to which Optis insisted it will fight to defend its intellectual property.
Optis provided Engadget with the following statement:
“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.”
Update, May 1, 2025, 11:53AM ET: This story was updated with a statement from Optis and details about the total compensation inclusive of fees and interest.
This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-ordered-to-pay-502-million-to-optis-by-uk-courts-153053338.html?src=rss
Apple has been ordered to pay a $502 million lump sum payment by UK courts for infringing on patents owned by Optis Cellular Technology LLC, based out of Texas. When you include interest and fees, Optis estimates the total sum to be in excess of $700 million. This particular company is not an aggrieved innovator, but instead what is referred to as a “patent troll.” That’s a company that buys up niche patents with the specific intent to seek damages for infringement from lucrative defendants like Apple, and it’s not their first time being awarded damages from the Cupertino giant.
This lawsuit was originally filed through London courts in 2019 over patents governing cellular technology, including 4G, that Optis says was improperly used in iPads and iPhones. In 2023, London’s High Court ruled in Optis’ favor and ordered Apple to pay just over $56 million plus interest to settle the dispute, inclusive of past and future sales that featured the offending tech. Optis successfully argued that this was far too low a sum, top to the half-a-billion-dollars in damages ordered today.
The iPhone maker has found itself in court over patent infringements time and time again in the past , not only with patent trolls, but also fellow industry stalwarts. The ability for enormous tech companies to (allegedly) infringe on design or utility patents and pay pennies on the dollar for the damage done years later seems to be a feature, not a bug.
Apple has unsurprisingly responded by promising to appeal the court’s decision, to which Optis insisted it will fight to defend its intellectual property.
Optis provided Engadget with the following statement:
“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.”
Update, May 1, 2025, 11:53AM ET: This story was updated with a statement from Optis and details about the total compensation inclusive of fees and interest. This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-ordered-to-pay-502-million-to-optis-by-uk-courts-153053338.html?src=rss
