Apple successfully appeals $300M Optis wireless patents verdict

4G LTE is still an expensive headache for Apple

Apple has again managed to avoid paying a massive fee in its long-running Optis iPhone wireless patents lawsuit, with the U.S. Court of Appeals throwing out a $300 million verdict.

Apple has been embroiled in a lawsuit with Optis Wireless Technology since 2019 over a handful of 4G LTE patents since 2019, and it has seen defeat twice. However, thanks to another favorable appeals court decision, it has managed to dodge the fine for a second time.

In a decision from the U.S. Federal Court of Appeals on June 16, the 2022 ruling that resulted in a demand for Apple to pay $300 million in compensation to Optis is to effectively be bounced back to the court in Texas. Reuters reports a new trial is required, due to a procedural issue that affected the result.

According to the three-judge panel, the problem was how U.S. District Judge Rodney Gilstrap had set up the form used by the jury to record their verdict.

At the time, both Apple and Optis petitioned for the form to be broken up so that the question of whether Apple had infringed the patents was asked on a per-patent basis. However, Gilstrap instead asked a single question on whether Apple infringed on the patents.

The Court of Appeals filing explains that the single question form deprived Apple of the right of a verdict on each legal claim against it. The use of a single question meant the answer applied to all claims, not just one.

If Apple infringed on any patents at all, the jurors were required to say “yes,” applying to all claims.

In response, the judges instructed for a vacation of the damages retrial judgment, and for a new trial to take place.

A follow up statement from Optis was shared with AppleInsider:

We remain highly confident the Court will establish fair compensation for the critical Optis patents that enable high-speed connectivity for millions of Apple devices. Nothing in this decision challenges the fundamental facts, which demonstrate that Apple is infringing Optis patents and permit a new trial on damages. No patents were found to be invalid by the U.S. Court of Appeals for the Federal Circuit.

Apple has not yet commented on the matter.

Millions and millions

The lawsuit dates back to 2019, when Optis lodged a complaint against Apple over seven patents connected to LTE cellular standards. One year later, Apple had failed in the trial, and was ordered to pay $506.2 million to Optis.

By April 2021, Apple had managed to secure a retrial on the verdict, due to the “serious doubt” over the verdict. Again there was a belief that the dispute had been “tainted” due to the way the jury was instructed.

At the time, the jury was not told what the FRAND terms were, which Gilstram said cast doubt on the reliability of the verdict. However, it was decided that the retrial wouldn’t determine whether Apple had infringed on the patents, but more to adjust the level of damages owed.

That May 2022 retrial resulted in the reduction to the $300 million figure that has been vacated by the Federal Court of Appeals.

A date for the retrial has yet to be set.

Even if the Optis lawsuit fails to secure any money, the company still stands to benefit. In May, the UK Court of Appeal declared a payment by Apple to Optis of $56.43 million plus interest was too low, and that Apple should instead pay $502 million.

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