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

Managing IP is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

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

Europe is among the most lucrative legal markets for PE firms to bet on, but clients’ reactions will decide whether external investment drives success
Rulings of note covered pre-June 2023 infringements and jurisdiction over non-UPC states, while winners of Managing IP’s EMEA Awards acted in multiple cases
Jason Blair, a former special marks examiner, said Dykema’s Texas presence will help him build deeper connections with clients
Lee Curtis and Rachel Platts at HGF discuss the rise of the ‘intention economy’ and its impact on trademark law
Martin Wintermeier discusses taking a hit for clients, not letting stress get to you, and why being a criminal defence lawyer might have been fun
Exclusive data and analysis reveal why clients feel external legal teams aren’t providing business-centric advice
The head of the soft IP team at engineering group Sandvik, winner of the in-house team of the year award, reveals why a flurry of M&A activity led to a busy 2024
Lawyers at Herbert Smith Freehills outline what rights owners should be doing ahead of sweeping changes to EU design law
Deals between five more law firms and President Trump and an antitrust lawsuit against Amgen were also among the top talking points this week
US counsel explain how they win new cleantech IP business and how they’re navigating the industry’s challenges
Gift this article