The U.K.’s Court of Appeal has ruled that Apple’s payment to Optis Cellular for standard-essential 4G patent royalties is too low. As a result, the iPhone maker now faces a $502 million payment.
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In 2022, the U.K.’s High Court ruled that Apple had violated standard essential patents related to 4G technology, making the company liable to pay royalties to Optis. Initially, there was speculation that Apple could face billions in payouts. However, the court ultimately imposed a significantly lower charge of $56.43 million, plus interest.
The Court of Appeal has ruled in favor of increasing the payment owed by Apple to Optis, following a challenge regarding the original amount. According to Reuters, Apple must now pay $502 million to Optis for the use of 4G patents in iPhones and other cellular devices.
The Court of Appeal’s partially redacted decision mandates that Apple pay a lump sum of $502 million to cover the period from 2013 to 2027. This payment secures a global license for the use of Optis’ patents.
After the ruling was published, the iPhone behemoth expressed its disappointment with the decision and announced plans to appeal.
“Optis makes no products and their sole business is to sue companies using patents they buy,” Apple’s spokesperson said, adding that the company will stay alert to prevent any attempts to demand unfair payments.
Optis “Pleased” with Ruling Against Apple
Meanwhile, an Optis spokesperson told AppleInsider that it’s “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.”
The Optis spokesperson also noted that, including interest and fees, the total value of the order surpasses $700 million.
The court also found that Apple has strong negotiating power, allowing it to secure lower fees and gain a competitive advantage, Optis said. “We will continue to ensure fair compensation for the Optis intellectual property that enables high-speed connectivity for millions of devices around the world.”
According to AppleInsider, this isn’t the first legal battle Apple has faced with Optis. In a previous lawsuit in the United States, Optis and PanOptis were initially awarded $506.2 million in 2021 for Apple’s use of 4G LTE patents. However, that amount was later reduced to $300 million.