Apple Must Pay Over $700 Million in Major Patent Damages Case

Apple has today been ordered to pay more than $700 million to the Texas-based cellular technology company Optis in a landmark UK patent ruling (via ipfray).

apple regent street hires
In London, the England and Wales Court of Appeal today ruled that Apple must pay a lump sum of $502 million to Optis Cellular Technology LLC for the use of standard-essential 4G patents in iPhones and iPads over a 14-year period spanning from 2013 to 2027. The decision marks a dramatic increase from the $56.43 million originally awarded by the High Court in 2023. In addition to the revised damages figure, the new judgment also includes interest, which could exceed $200 million, bringing Apple's total liability in the case to more than $700 million.

The dispute centers on whether Apple breached its obligations to license the patents on FRAND (fair, reasonable, and non-discriminatory) terms, which are required under international standards for the use of essential wireless technology. Optis is a Texas-based entity that does not manufacture products but holds and licenses intellectual property. It first raised the case in London in 2019.

Apple had previously argued that the royalty rates proposed by Optis were excessive and not compliant with FRAND principles. In a statement provided to Reuters, Apple said "We are disappointed by this decision and plan to appeal."

Optis makes no products and their sole business is to sue companies using patents they buy. We will continue to defend against their attempts to extract unreasonable payments.

The ruling is believed to be one of the largest patent damages awards in UK history. According to legal filings, Apple had previously expressed concern that an unfavorable royalty ruling could constitute grounds for exiting the UK market. While the company later walked back that position, the $700 million judgment moves the case significantly closer to that earlier worst-case scenario than had been anticipated following the High Court's original determination.

Apple can still petition the UK Supreme Court to review the case, but such appeals are usually granted only in limited circumstances, such as significant points of law or matters of public interest.

Update: Optis has issued a statement to MacRumors regarding the ruling:

We're 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. In addition to ordering payment that exceeds $700 million with interest and fees, the Court has judged that "Apple's significant negotiating strength leads some parties to agree lower rates than would be agreed between a willing licensor/willing licensee" thereby gaining an unfair advantage. We will continue to ensure fair compensation for the Optis intellectual property that enables high-speed connectivity for millions of devices around the world."

Popular Stories

Home Hub Command Center with Dome Base Feature

Apple Working on All-New Operating System

Thursday September 25, 2025 1:11 pm PDT by
Apple is developing an all-new operating system codenamed "Charismatic," according to Bloomberg's Mark Gurman. Apple smart home hub concept based on rumors This is likely Apple's long-rumored "homeOS" operating system. In a report last month, Gurman said both Apple's rumored smart home hub in 2026 and tabletop robot in 2027 will run the new operating system. He said the software platform ...
Tim Cook Rainbow

Apple Event in October? Here's What to Expect

Monday September 29, 2025 9:31 am PDT by
Apple's annual iPhone event is in the rearview mirror, but rumors suggest the company plans to release a handful of additional products before the year ends. Will there be another Apple event this October? We discuss the possibility below. Apple in October Apple's most recent October events were in 2021 and 2023. In 2022 and 2024, Apple did not host an October event. Instead, it...
iOS 26

Apple Continues to Prepare iOS 26.0.1 With Multiple Bug Fixes Expected

Sunday September 28, 2025 1:30 pm PDT by
Apple is preparing to release iOS 26.0.1, according to a private account on X with a proven track record of sharing information about future iOS versions. The account initially said iOS 26.0.1 would have a build number of 23A350, but they now expect the update to have a build number of 23A355. This suggests that the software update will include more bug fixes or changes than initially...
Apple MacBook Pro M4 hero

New MacBook Pro Nears Mass Production, But Four Bigger Upgrades Expected Next Year

Sunday September 28, 2025 2:08 pm PDT by
Apple's next MacBook Pro models will enter mass production soon, according to the latest information shared by Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said he continues to believe the new MacBook Pro models will be released at some point between late 2025 and the first quarter of 2026, meaning they should be available to order by March at the latest. Apple often...
iOS 26

Apple Releases iOS 26.0.1 With Fixes for Wi-Fi, Cellular, and Camera Issues on iPhone 17 Models

Monday September 29, 2025 10:12 am PDT by
Apple today released iOS 26.0.1 and iPadOS 26.0.1, the first updates to the iOS 26 and iPadOS 26 operating systems that came out earlier this week. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's release notes for the update, iOS 26.0.1 addresses a bug that could cause aberrations in...
iOS 26 Battery Glass Feature

iPhone 16 Pro Max 80% Charge Limit: One Year Later, Was It Worth It?

Wednesday September 24, 2025 3:58 pm PDT by
With the iPhone 15 series, I did an experiment and kept my iPhone's Charge Limit set at 80 percent for an entire year. It provided an interesting look at the impact of charge limits on battery longevity, so I decided to repeat it for the iPhone 16 line. Since September 2024, my iPhone 16 Pro Max has been limited to an 80 percent charge, with no cheating. As of today, my battery's maximum...
iphone 17 ceramic shield

Regular iPhone 17's USB-C Charging Speeds Tested With Apple Chargers

Friday September 26, 2025 9:01 am PDT by
The website ChargerLAB has tested the standard iPhone 17 model's USB-C charging speeds with a variety of Apple's chargers, from 18W to 140W. The device reached a peak charging speed of around 27W to 28W with these Apple chargers:29W USB-C Power Adapter 30W USB-C Power Adapter 35W Dual USB-C Port Power Adapter 35W Dual USB-C Port Compact Power Adapter 40W Dynamic Power Adapter with 60W Max...
LG UltraFine 6K Display TB5

LG UltraFine 6K (32U990A) TB5 Display: Pre-Orders Open September 30

Monday September 29, 2025 6:21 am PDT by
Pre-orders for LG's new UltraFine evo 6K display (model 32U990A) with Thunderbolt 5 support will begin on September 30, according to a major U.S. retailer listing. LG first revealed the 32-inch display at CES 2025 in January, teasing its status as the first monitor to support Thunderbolt 5. At the time, LG only provided high-level specs, but left pricing, availability, and full technical...
Foldable iPhone 2023 Feature Iridescent 1

Samsung Confirms Plan to Make Foldable Displays for Major American Company

Monday September 29, 2025 6:54 am PDT by
Samsung Display president Lee Cheong has confirmed plans to make foldable smartphone displays for a major American company, which is widely believed to be Apple. As reported in Chosun Biz, Cheong last week told journalists in Seoul that the company is accelerating preparations for mass production of OLED displays designed for foldable smartphones to be supplied to a "North American client."...
maxresdefault

Review: A Week With the iPhone 17 Pro

Friday September 26, 2025 12:51 pm PDT by
Apple's iPhone 17 models have been out for a week now, so we thought we'd do a longer-term review of the flagship iPhone 17 Pro and Pro Max now that we've been able to spend more time with them. Subscribe to the MacRumors YouTube channel for more videos. MacRumors videographer Dan Barbera has a Silver iPhone 17 Pro and a Cosmic Orange iPhone 17 Pro Max, and despite a lot of concern over...

Top Rated Comments

turbineseaplane Avatar
22 weeks ago
I think I found the problem

Score: 38 Votes (Like | Disagree)
Tannerozzy Avatar
22 weeks ago
Why is the UK ruling on a patent dispute between two American companies?
Score: 36 Votes (Like | Disagree)
Chet-NYC Avatar
22 weeks ago
Another patent troll gets a payday.
Score: 27 Votes (Like | Disagree)
TechWhisperer Avatar
22 weeks ago
Apple’s recent trajectory reminds me of a plane losing altitude. Apple is going down in slow motion.
Score: 21 Votes (Like | Disagree)
Onelifenofear Avatar
22 weeks ago

Given that it’s a rapidly shrinking market with a bleak future, and the government there is increasingly hostile toward American enterprises and is growing more totalitarian in their demands (such as demanding encryption backdoors)…it might be time to consider it.
Complete and utter gibberish. Deserves a rebuttal.

UK's Annual sales are about $20B. Sales are up YoY for the past 10+ Mac sales are even better.

OS: Around 45-52%. Android: Around 48-55% - Some data shows iOS has a slight lead. This is one manufacturer against >10 others.

Uk is not remoetely totalitarian. Think you need to get off Twitter. We have more rights and Freedoms than the USA. We now have government that actually care more about people than corporations or lining their own pockets. Note: I am politically agnostic. I think most politicians are self serving.

Hostile to American Companies.. or requiring them to actually pay some tax that the previous govemernt let them get away with for 15 years... is that what you mean?

Encryption "backdoor" is not true. Another sensationalised social media example. It is not something that a government could usa a tool to open up anyone's phone.

It was to Allow access to iCloud data for persons under arrest for specific terrorism and Child exploitation. The data was ONLY released under court order per specific person / case. This already exist in the UK and for many other counties. However Advanced Data protection does not work like that and Apple could not ope that data even if they wanted to... it's completely locked. So Apple have now removed that option in the UK. Please note this really is for really bad guys and ONLY UNDER COURT ORDER... there is no way the government could just spy on anyone... that is not how it works. About 0.0001% of any apple accounts use ADP.
Score: 15 Votes (Like | Disagree)
0049190 Avatar
22 weeks ago

Given that it’s a rapidly shrinking market with a bleak future, and the government there is increasingly hostile toward American enterprises and is growing more totalitarian in their demands (such as demanding encryption backdoors)…it might be time to consider it.
Load of rubbish. The U.K. has been trying for years to get a free trade agreement with the US. Nobody is targeting Apple but if they keep breaking the law they will keep getting sanctioned. The courts are independent of government in the U.K.
Score: 14 Votes (Like | Disagree)