Apple’s headquarters in Cupertino, CA.
Optis Wireless purchased patents related to standardized technologies in cellphones. These are necessary, and used industry-wide. In the U.S., a federal judge sided with Apple during an appeal, throwing out what would have been a $506 million payment to Optis Wireless for those standardized 3G and 4G LTE technologies used in Apple products like the iPhone, iPad, and Apple Watch.
After initially losing the case, Apple promised to appeal, stating, “Lawsuits like this by companies who accumulate patents simply to harass the industry only serve to stifle innovation and harm consumers.” The claim was that Optis Wireless simply bought patents that were broad and part of standardized technologies. A federal judge seemed to agree, as the original ruling did not consider whether the standard-essential patents were offered on “fair, reasonable, and non-discriminatory” (FRAND) terms.
Now Apple’s up against Optis Wireless again. This time in the U.K. However, the damages could be as much around $7 billion (£5 billion). A British High Court ruling stated Apple infringed two of these patents, though didn’t comment on FRAND terms for the standards-essential technologies. In response, Apple stated that they may leave the U.K. over the ruling.
Apple Threatens to Leave
The U.K. certainly has had its fair share of woes since Brexit, but Apple’s own Brexit wouldn’t have anything to do with the nation leaving the EU. Instead, it’s over a patent troll asking for billions in damages and a High Court Justice stating that Apple “might be disappointed” by the rate Apple would have to pay. Justice Meade asked that, “There is no evidence it is even remotely possible Apple will leave the UK market?” Apple responded through their lawyer, Marie Demetriou, who stated,
“I am not sure that is right… Apple’s position is it should indeed be able to reflect on the terms and decide whether commercially it is right to accept them or to leave the UK market. There may be terms that are set by the court which are just commercially unacceptable.”
If the U.K. decides Apple must pay the patent troll billions of dollars, Apple will decide that the fine is not economically feasible. That the U.K. doesn’t provide Apple with enough revenue to be worth paying $7 billion to a patent troll that the U.S. has pointed out refused to license their purchased industry-standard patents under fair and reasonable terms. Depending on the amount set by the U.K. judge, this could be the beginning of the end of Apple in the U.K. Of course, with Apple’s threat on the table, a judge may reconsider a hefty fee.
Sources:
- Helen Cahill, This is Money
- Hartley Charlton, MacRumors
- EconoTimes
- Ben Lovejoy, 9to5Mac
- Michael Potuck, 9to5Mac