Apple to pay Optis $5m a year for SEPs: reports

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Apple to pay Optis $5m a year for SEPs: reports

Apple store
saiko3p / Adobe Stock

A Foss Patents blog post revealed that Mr Justice Marcus Smith handed down his judgment in Optis v Apple on May 10

Update, June 9: Managing IP has since obtained a copy of the judgment.

Mr Justice Marcus Smith has determined that Apple must pay $5 million a year for an Optis standard essential patent portfolio in a 300-page decision at the England and Wales High Court, it emerged in a Foss Patents blog post today, June 7.

The May 10 Optis v Apple decision hasn’t been published, but the blog broke the news by obtaining some information from an anonymous source.

It would mean that Apple must pay around $60 million for a global lifetime licence that includes back royalties to the portfolio, Foss Patents stated.

According to the blog, the court rejected some of the iPhone maker’s arguments for lowering the royalty rates. Justice Smith didn’t accept Apple’s position that the royalty should be based on the smallest saleable patent-practising unit, the blog said.

The court also rejected Optis’s comparable licence agreements, the blog said.

According to Foss Patents, the court said: "[G]iven the nature of Optis’ counterparties to the Optis comparables – generally small players in the market, with low or at least not massive sales volumes – there is a question whether these licences properly reflect a FRAND rate for a counterparty like Apple."

The court didn’t find Apple to be an unwilling licensee, according to Foss Patents.

Optis and Apple have been embroiled in a global dispute over SEPs for 3G and 4G technology for several years.

Optis initially sued Apple in the UK, alleging infringement of eight patents in February 2019.

The litigation was split into four technical trials to determine validity and infringement, plus this one to decide the terms of a fair, reasonable and non-discriminatory (FRAND) licence.

There was also an interim trial in October 2021, which determined that Apple had to agree to take a court-determined FRAND licence to avoid an injunction.

Apple had previously threatened to leave the UK in July 2021 over its battle with Optis after fears that it would be forced to pay $7 billion.

But in November 2021 – after the interim trial – it agreed to take a licence that the court determined to be FRAND, which has now been determined.

more from across site and SHARED ros bottom lb

More from across our site

South Korea's One Law Partners is combining with boutique firm Minwho Law Group to leverage global expansion of K-content and build a broader offering spanning IP, tech and regulatory advisory work
Russell Kennedy's Gina Tresidder on juggling matters, delivering hard truths, and why IP ownership is rarely as simple as people think
Attorney Oran Friar and trainee attorney Harry Cunliffe at Reddie & Grose, share that patent filings for clinical LLMs are surging, but success in the UK and Europe hinges on demonstrating technical innovation
Implementers can use the UK courts to seek FRAND terms for patent pool licences
The first credible UPC spinouts are growing, and they are coming from elite patent litigation teams, suggesting specialist litigators may no longer need large platforms to compete
Voyage IP has hired a veteran IP leader from Spruson & Ferguson as its head of trademarks, as well as another consultant who will boost the firm’s commercial offering
Lawyers say unwritten appearance expectations can disproportionately affect women and junior talent, making proactive guidance a growing responsibility for law firm leaders
Apple’s lawsuit against OpenAI, which features Tier 1-ranked disputes firms on both sides, reflects how trade secrets litigation is becoming a prominent competition feature
Drew & Napier’s leadership appointments show one way full-service firms can back up claims about the strategic importance of IP
Strike-out application will hear claims that the copyright aspect of an IP infringement claim brought by a gambling and sports betting group should be dropped
Gift this article