Apple has suffered a legal setback in its long running legal battle with a Texas-based patent holding firm in British courts.

Reuters reported that London’s Court of Appeal ruled on Thursday that Apple must pay Texas-based Optis Cellular Technology LLC $502 million (£378m) for the use of 4G patents in devices including iPhones and iPads.

Texas-based Optis Cellular Technology LLC had sued Apple back in 2019 over its use of patents which Optis alleged are essential to certain technological standards, such as 4G.

Case background

Apple had lost the $506.2 million patent infringement case in a US courtroom.

But Apple appealed, and in April 2021 a US judge agreed with Apple and overturned the $506 million in damages award against it.

However that was not the end of the matter, as the legal battle was also being waged by Optis in the United Kingdom.

Optis won a separate case against Apple in the UK, this time claiming billions (up to $7 billion) rather than just millions of dollars.

In June 2021 a High Court judge ruled that Apple had infringed two Optis patents, which help iPhones connect to 3G and 4G networks.

Then in July 2021 Apple threatened it could walk away from the UK market if the court ruled that it has to pay the fees.

Exiting the UK market would mean Apple did not have to pay.

London’s High Court ruled in 2022 that two of Optis’ 4G patents were so-called standard essential patents and that Apple had infringed them.

Apple appealed against that decision in May 2023, arguing that the two patents in issue were not essential to 4G standards and that it had not infringed the patents.

London’s High Court also ruled in 2023 that Apple should pay Optis a total of $56.43 million plus interest to cover past and future sales over a set period.

But Optis reportedly argued that figure was far too low and challenged the decision at an appeal hearing earlier this year.

Apple to appeal

Now London’s Court of Appeal ruled on Thursday that Apple must pay $502 million (£378m) for the use of 4G patents in devices to Optis Cellular Technology.

The Court of Appeal said in a partially-redacted written ruling that Apple should pay a lump sum of $502 million, not including interest, for the period from 2013 to 2027.

The lump sum relates to a global licence to use Optis’ patents.

An Apple spokesperson said they were “disappointed by this decision and plan to appeal.”

“Optis makes no products and their sole business is to sue companies using patents they buy,” the spokesperson was quoted as saying by Reuters. “We will continue to defend against their attempts to extract unreasonable payments.”