Uncertainty around Optis-Apple case stirs debates in the Tech ecosystem

Apple has successfully persuaded a US appeals court for the Federal Circuit to overturn a $300 million jury verdict that found the company had infringed wireless standard-essential patents owned by Optis Wireless Technology.

The US Court of Appeals for the Federal Circuit ruled that Optis’ case must be tried a refresh in Texas after concluding that the instructions to the jury in the earlier trial were flawed.

This decision marks the second time that a nine-figure patent ruling in favor of Optis has been reversed in this case. 

The uncertainty around the Optis-Apple case stirs up debates in the tech ecosystem 

Optis and its affiliates sued Apple in 2019 in federal court in Marshall, Texas, accusing the tech giant of infringing its patent rights in the technology behind the LTE wireless standard with its iPhones and other products.

In 2020, a jury ruled that the iPhone maker would have to pay Optis $506 million for infringing its patents. In 2021, US District Judge Rodney Gilstrap ordered a retrial on damages, postulating that the amount may not have necessarily covered the duty of Optis to license the essential patents fairly and reasonably.

Later that same year, a different jury awarded Optis $300 million in damages after the retrial. The Federal Circuit reversed this award, and the case was remanded for another trial on infringement and related damages. A three-judge panel said Gilstrap erred in consolidating all the patents into a single question for the jury.

The appeals court held that the district court’s single-infringement question deprived the iPhone maker of its right to a unanimous verdict concerning each legal claim against it.

In a separate ruling last month, a UK court found that Apple owes Optis $502 million for infringing their UK wireless patents. Apple has announced its intention to appeal this decision. 

A spokesperson for Optis stated that the company is very confident that the court will set a fair payment for the important Optis patents that allow millions of Apple devices to connect at high speeds.

The case is known as Optis Cellular Technology LLC v. Apple Inc., US Court of Appeals for the Federal Circuit, No. 22-1925. 

When asked to comment on the Federal Circuit ruling, neither an attorney nor spokespeople for Apple responded immediately for comments. 

Optis demands appropriate compensation in Apple’s case

London’s High Court in 2023 ruled that Apple should pay Optis $56.43 million plus interest to cover past and future sales over a specific period. The tech firm was accused of using 4G patents in devices, including iPhones and iPads.

However, Optis argued that the amount was far too low, and it challenged the ruling in an appeal that was heard in February and March.

Later, the court of appeals said the iPhone maker should pay an undivided $502 million, excluding interest, from 2023 to 2027.

The payment was associated with a worldwide license for using Optis’ patents. In a statement, an Apple spokesperson said it was disappointed and would appeal the decision.

A spokesperson for Optis, however, welcomed the ruling, saying it “categorically corrected” a previous decision it says was “plainly flawed” and had gone far in the right direction to recognize the true worth of its patents on Apple devices.

The spokesman also said they will continue seeking fair compensation for Optis’ intellectual property, which connects millions of devices worldwide with high-speed connectivity.

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