Apple dodges $300M payout in major patent case
What's the story
Apple has won a major legal battle against Optis Wireless Technology, after a US appeals court overturned a $300 million damages award over alleged LTE patent infringement.
The judgment was handed down on Monday by the US Court of Appeals for the Federal Circuit.
The case will now go back to Texas for a new trial, as reported by Reuters.
Patent infringement
Background of the dispute
The dispute started in 2019 when Optis, a Texas-based IP firm, accused Apple of infringing on several LTE-related standard-essential patents (SEPs).
These patents are supposed to be licensed on fair, reasonable, and non-discriminatory (FRAND) terms.
A jury initially ruled in favor of Optis in 2020 and awarded $506 million. However, District Judge Rodney Gilstrap overturned that verdict over FRAND concerns.
Retrial
In a second trial, Optis was awarded $300 million
In a second trial, Optis was awarded $300 million. However, Apple appealed again.
This time, the Federal Circuit didn't dispute the damages amount but questioned how the jury was instructed.
The court ruled that combining multiple patents into one infringement question denied Apple its right to a unanimous verdict on each claim.
International implications
UK ruling and response from Optis
In a related but separate case in the UK, Apple was recently ordered to pay Optis some $502 million over similar LTE patent issues. Apple is also appealing that decision.
The UK and US cases are independent, but this reversal could give Apple some confidence.
Responding to the US ruling, Optis said it remains "highly confident" that Apple will eventually have to pay fair compensation.