Apple Faces UK Patent Battle After US Victory in Optis Dispute

The longstanding patent dispute between Apple and Optis Wireless has entered a new phase this week as the case reaches the United Kingdom's Supreme Court. A panel of five judges is scheduled to hear the matter over three days, according to a report by 9to5mac.

Since 2019, Apple and Texas-based Optis Wireless have been engaged in legal battles over patents covering various fourth-generation (4G)/LTE network technologies. Optis alleges that Apple’s iPhone, iPad, and Apple Watch models supporting LTE infringe its patents in separate lawsuits filed in both the United States and the United Kingdom.

Throughout the proceedings, both Apple and Optis have experienced wins and losses amid a series of appeals. Recently, a US jury sided with Apple following previous trials that resulted in damage awards of $506 million and $300 million, both of which were eventually overturned.

Apple was acquitted of infringing all five disputed patents at the end of February. However, Optis indicated it intends to seek “another review of the jury verdict by the US District Court and the Federal Circuit Court of Appeals,” suggesting the legal conflict may continue.

Regarding the ongoing UK battle, the Financial Times reported that Apple is now requesting the UK Supreme Court to overturn a ruling requiring it to pay $502 million to Optis for a global license to a patented technology.

The dispute in the UK has shifted focus from whether Apple infringed Optis’s patents to the amount Apple must pay for using the patented technology under fair, reasonable, and non-discriminatory (FRAND) terms.

In 2023, the London Supreme Court ruled that Apple should pay $56 million to Optis. However, the Court of Appeal increased this amount ninefold last year to $502 million. The appellate court partially based its calculation on an agreement Optis made with Google and included royalties dating back to 2013. In contrast, the Supreme Court had imposed a six-year time limit on such payments.

Apple is therefore asking the UK Supreme Court to review both the amount and the methodology used, arguing that the Court of Appeal “misapplied the law” and that its evaluation approach was “arbitrary.”

Optis counters that Apple has repeatedly tried to avoid paying fair royalties and has exploited its market power to reduce licensing fees. The report also notes that Qualcomm opposes Apple’s appeal, contending that Apple’s position contradicts established licensing principles and could undermine incentives to develop new technologies.