- UK Court of Appeal increases Apple’s patent licence fee to $502m, with interest exceeding $700m.
- Decision follows a long-running dispute since 2019 over FRAND licence terms with Optis Cellular Technology.
What happened: Apple’s patent licence fee skyrockets in UK court of appeal
Apple has been handed a significantly higher patent licence fee by the UK Court of Appeal, which overturned a previous ruling and increased the fee from $56.43 million to $502 million. This decision, which includes interest, brings Apple’s total liability to over $700 million, making it potentially the highest-value court-determined Fair, Reasonable, and Non-Discriminatory (FRAND) licence on record. The dispute dates back to 2019 when Optis Cellular Technology filed a lawsuit against Apple, claiming infringement of eight of its UK patents. The case has seen multiple technical trials and legal challenges, with the Court of Appeal ultimately finding that the original judge’s methodology was flawed and underestimated the value of Optis’s patent portfolio.
The UK Court of Appeal’s decision to increase Apple’s patent licence fee is a significant development in the long-running dispute with Optis Cellular Technology. The court found that the original judge had wrongly discarded expert evidence and created a flawed methodology, leading to an underestimation of the patent portfolio’s value. The Court of Appeal reinstated a comparables-based approach, concluding that the correct licence fee was $502 million. This decision underscores the complexities involved in FRAND licensing and the importance of expert evidence in determining fair and reasonable terms. The case highlights the ongoing challenges faced by tech companies in navigating patent disputes and the potential financial implications of such legal battles.
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Why it is important
The UK Court of Appeal’s decision to increase Apple’s patent licence fee to over $700 million is a landmark ruling in the realm of patent disputes. This case highlights the complexities and financial stakes involved in FRAND licensing, particularly for tech giants like Apple. The decision underscores the importance of expert evidence in determining fair and reasonable terms and the potential for significant financial implications when such evidence is disregarded. The case also highlights the ongoing challenges faced by companies in navigating patent disputes and the need for robust legal strategies to protect their interests. This ruling serves as a reminder of the high stakes involved in intellectual property litigation and the importance of adhering to FRAND principles.
