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 2025

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

AI
Leaders at four firms share their hiring approach, including whether AI knowledge is a must-have for new staff
McKool Smith and Licks Attorneys are acting in the dispute, which alleges infringement of patents covering video-related technologies
Legacy firm Allen & Overy agreed a high-profile tie-up with US firm Shearman & Sterling in May last year
News of Verizon settling its lawsuit with Headwater Research and a copyright setback for AI firm Perplexity at a New York court were also among the top talking points
IPH, which owns several IP businesses in the APAC and Canada, reported a 16.5% increase in revenue and 13% jump in profit after tax
With Ireland’s government re-engaging with the idea of a UPC referendum, it provides a chance to improve the system further
US-based company says appointment of Jorge Ordonez shows its momentum as a private-equity-backed platform expanding in the IP services market
The firm hired an IP litigation team during the reporting period and has entered the Managing IP rankings for trademark work
Masaki Mikami of Marks IP explains how he helped prove acquired distinctiveness to secure protection for 'Pocky' in Japan
Daralyn Durie discusses the ‘amazing’ opportunity of working on an AI case, the value of celebrating women, and how to build the next wave of talent
Gift this article