Apple asks Supreme Court to slash $502M Optis patent license bill

Apple is seeking to overturn an order that would force the company to pay Optis Wireless approximately $502 million for a worldwide license on 4G and LTE patents, with arguments scheduled before the UK’s highest court this week.

The dispute dates back to 2019. The Texas-based wireless technology owner has claimed in parallel American and British lawsuits that various iPhones, iPads and Apple Watch models equipped with LTE violate its intellectual property. Both sides have exchanged victories and defeats across multiple appeals in the years since the litigation began.

A recent American jury found in Apple’s favor after two earlier verdicts awarding Optis $506 million and then $300 million were thrown out. In February the iPhone maker was cleared of infringing all five patents at issue. Optis told 9to5Mac that it anticipates “a further review of the jury’s verdict by the U.S. District Court and Federal Circuit.”

The UK case now focuses on FRAND licensing terms. The current British proceedings no longer examine infringement itself but instead address the proper payment for using the technology on fair, reasonable and non-discriminatory terms. A London High Court initially set the fee at $56 million in 2023; last year the appellate panel raised that sum ninefold to $502 million.

The higher tribunal partly based its valuation on an existing Optis agreement with Google and decided royalties should run from 2013 rather than applying the six-year cap endorsed by the lower court. Apple has asked the Supreme Court to examine both the total and the approach used to reach it.

Apple argues the appeal court erred in law. According to the Financial Times, Apple contends the appellate judges “erred in law” and that the chosen valuation method was “arbitrary.” Optis counters that Apple has repeatedly tried to evade fair payments and leveraged its size to drive royalties down. Qualcomm is opposing the appeal as well, warning that Apple’s stance deviates from standard industry practices and could reduce motivation for future innovation.

The Supreme Court hearing begins this week. A five-judge panel will consider the matter across three days of hearings. The Financial Times first reported Apple’s latest move.