A UK court has ordered Apple to pay $502 million in lump sums for infringing patents owned by Texas-based Optis Cellular Technology LLC. Optis estimates the total amount to be more than $700 million, including interest and fees. This particular company is not a victimized innovator, but a so-called "patent troll." The company acquires niche patents with the express purpose of seeking infringement damages from lucrative defendants like Apple, and this is not the first time it has received compensation from the Cupertino giant.
The suit was originally filed in a London court in 2019, with Optis alleging that its patents for cellular technology, including 4G, were improperly used in iPads and iPhones. In 2023, the High Court in London ruled in Optis' favor and ordered Apple to pay just over $56 million in interest to resolve the dispute, covering past and future sales featuring the technology in question. Optis argued that this amount was too low and won, with a $500 million damages order today.
The iPhone maker has been in court many times before for patent infringement, working with not only patent trolls but also industry heavyweights. The ability of a major tech company to (allegedly) infringe design and utility patents and then pay out small damages years later seems to be a feature, not a bug.
As expected, Apple has promised to appeal the court's decision, and Optis says it will fight to protect its intellectual property.
Optis issued the following statement to Engadget:
We are pleased that the UK Court of Appeal has made meaningful progress in affirming and amending its clearly flawed previous decision and recognizing the true value of our patents in Apple devices. In addition to ordering the payment of more than $700 million in interest and costs, the Court of Appeal found that "Apple's strong negotiating power has led some parties to agree prices lower than those negotiated between licensors and licensees," giving them an unfair advantage. We will continue to ensure fair compensation for Optis' intellectual property that enables high-speed connections for millions of devices around the world.
Updated May 1, 2025 at 11:53 a.m. ET: This article has been updated to reflect Optis' statement and details regarding total compensation, including fees and interest.