A UK appeals court has ordered Apple to pay $502 million to Optis Cellular Technology, a company that makes no products, for using 4G-related patents in the iPhone and iPad, reversing an earlier decision that it would pay a more modest amount.
Image source: Zhang Kaiyv / Unsplash
According to Reuters, the ruling is the latest step in a long-running legal battle between the tech giant and a Texas patent company that filed the lawsuit back in 2019. Earlier, in 2023, the London High Court ordered Apple to pay $56.43 million with interest for the use of the technology for a certain period. However, Optis considered this amount to be too low and sought a review of the case. As a result, the appeal court increased the compensation almost ninefold, ruling that $502 million is a fair payment for a global license for the period from 2013 to 2027.
An Apple spokesperson said the company was disappointed with the ruling and would appeal it. “Optis doesn’t make anything and its only business is suing companies using the patents it bought,” the spokesperson added. “We will continue to defend ourselves against their attempts to extort unreasonable payments.”
Optis, on the other hand, welcomed the ruling, saying it “corrected a clearly flawed prior decision and confirmed the real value of our patents to Apple devices.” Optis said it will continue to seek fair compensation for the intellectual property that powers high-speed connections for millions of devices around the world.
Experts note that the outcome of this case could affect other similar cases in the telecommunications industry. It is unclear whether Apple will be able to challenge the decision in higher courts.