Apple Faces $700M Bill After Losing UK Patent Troll Battle, Threat of Market Exit Falls Flat

Summary Apple has been ordered to pay $502M to Optis, a patent assertion entity (commonly known as a patent troll), for the use of standards-essential 4G patents in iPhones and cellular iPads. The total amount due, including interest, exceeds $700M. The court ruled in favor of Optis, rejecting Apple’s claim that it might withdraw the iPhone from the UK market if forced to pay.

Optis bought several standards-essential patents (SEPs) necessary for LTE technology, which are supposed to be licensed on Fair, Reasonable, And Non-Discriminatory (FRAND) terms. However, there is no legal definition of FRAND, leading to disputes like this one.

Previously, Optis won a lawsuit against Apple in the US and UK, but argued that the $56M awarded in the UK was insufficient. The Court of Appeal ruled that Apple should pay a global license fee of $502M for the period from 2013 to 2027.

Apple plans to appeal the decision, expressing disappointment. There is an urgent need for global patent reform to address issues like overly broad patents and the practice of buying patents solely to sue companies.