Apple will try to convince the UK Supreme Court this week to throw out a $502 million judgment in favor of patent holder Optis Wireless.
As reported in the Financial Times, the UK Supreme Court this week takes up a dispute that has stretched on since 2019 in both U.S. and UK courts, when Optis first accused iPhones, iPads, and LTE-equipped Apple Watch models of infringing patents covering 4G networking technology.
The current UK fight is no longer about whether Apple infringed the patents, but rather what Apple should reasonably owe for using it. Patents deemed essential to a wireless standard must be licensed on fair, reasonable, and non-discriminatory (FRAND) terms, and the two sides remain far apart on the number. The award is structured as a single upfront payment spanning 2013 to 2027, covering Optis' LTE patents across Apple's cellular hardware.
The figure has shifted dramatically over the course of the proceedings. London's High Court had set the bill at $56.43 million in 2023. The Court of Appeal multiplied that roughly ninefold to $502 million last year. To get to that figure, the judges leaned on a separate agreement Optis had signed with Google as a reference point and counted royalties stretching back to 2013, well beyond the six-year window the High Court had favored.
Apple wants the justices to reconsider not just the size of the award but how the lower court arrived at it, contending the Court of Appeal "erred in law" and produced a figure it calls "arbitrary." Optis counters that Apple has spent years dodging fair payment and using its scale to drive rates down. Qualcomm has also lined up against the appeal, warning that Apple's stance breaks with established licensing norms and risks discouraging future innovation.
The dispute traces back to a pivotal 2020 ruling in which the UK Supreme Court held that British courts can set worldwide patent licensing rates, even though they can only rule on the infringement of UK patents. That decision opened the door for Optis to pursue global damages. After a 2021 High Court finding that Apple had infringed two of its patents, with the potential bill reported to run as high as $7 billion, an Apple lawyer told the court the company could withdraw from the UK rather than accept terms it considered "commercially unacceptable." Apple later backed away from that position.
The proceedings in the UK contrast with the parallel U.S. case, where Apple has fared considerably better. In February, a U.S. jury cleared Apple of infringing any of the five patents in dispute, the latest turn in a case that has repeatedly ended in Apple's favor.
Two earlier awards, of $506 million and $300 million, were each thrown out on appeal. Optis has signaled the U.S. legal battle isn't finished, saying it expects the District Court and the Federal Circuit to revisit the verdict.
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