Apple loses appeal in 4G patent lawsuit over iPhones and iPads, must pay Optis $502 million

Apple has been ordered to pay $502 million to Texas-based Optis Cellular Technology after losing a long-running patent dispute in London’s Court of Appeal. The case centers on the use of 4G patents in Apple devices, including iPhones and iPads.

The legal battle began in 2019 when Optis sued Apple in the UK, claiming the tech giant had used patents Optis considers essential to 4G standards without proper licensing. In 2023, London’s High Court initially ruled that Apple owed $56.43 million plus interest for both past and future use. Optis pushed back, arguing the amount was far too low.

On Thursday, the Court of Appeal sided with Optis. In a partially redacted ruling, the court increased the amount to a lump sum of $502 million, covering the use of Optis’ patents from 2013 to 2027. Interest is not included in that total.

This isn’t Apple’s first run-in with Optis over wireless patents. When we first reported on the case in August 2021, a U.S. court had ordered Apple to pay $300 million to Optis for infringing patents related to iPhone technology. That followed an earlier 2020 verdict in which a federal jury found Apple liable for $506 million for infringing LTE patents held by Optis, PanOptis Patent Management, and Unwired Planet. Those patents were used in iPhones and other LTE-enabled devices.

The ruling is based on Apple’s global use of the technology and relates to what’s known as a FRAND license—short for “fair, reasonable, and non-discriminatory”—a term used in disputes involving standard-essential patents.

Apple isn’t letting it go without a fight. A spokesperson said the company was “disappointed by this decision and plan to appeal,” Reuters reported.

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

Optis welcomed the court’s decision. A spokesperson said the ruling “corrected a clearly flawed prior ruling and has made meaningful progress toward affirming the true value of our patents to Apple devices.”

“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 company said.

This is just the latest development in the years-long standoff between the two companies. Apple has pushed back on how much it should pay for using industry-standard technologies, while firms like Optis argue that compensation should reflect their full market value.