Apple Wins Third Optis Patent Trial, Avoids $300 Million Damages

Apple Triumphs in Third Optis Patent Trial, Avoids $300 Million Payout

In a significant legal victory, Apple has emerged unscathed from its third courtroom battle against Optis Wireless Technology, a company often labeled as a patent troll. The unanimous jury decision concluded that Apple did not infringe upon any of Optis’s LTE patents, effectively nullifying the potential $300 million in damages previously awarded to Optis.

Background of the Legal Dispute

The contentious relationship between Apple and Optis began in February 2019 when Optis filed a lawsuit alleging that Apple had violated seven of its patents related to LTE technology. Optis claimed that it had been in discussions with Apple up until 2017 to license these patents under fair, reasonable, and non-discriminatory (FRAND) terms. However, these negotiations did not culminate in an agreement, leading Optis to pursue legal action.

First Trial and Subsequent Developments

In August 2020, a Texas federal jury sided with Optis, ordering Apple to pay $506.2 million in royalties for past sales of devices deemed to infringe upon Optis’s patents. Apple promptly appealed this decision, citing concerns over the jury’s instructions and the consolidation of multiple patent claims into a single question, which, according to Apple, made it challenging to discern the specific claims the jury agreed upon.

While the appeal was underway, Optis sought additional compensation, requesting ongoing royalties of $4.22 for every iPhone sold, $3.62 for each iPad, and $2.25 for every Apple Watch. This move aimed to secure a continuous revenue stream from Apple’s future sales.

Second Trial and Reduction of Damages

In April 2021, Judge Rodney Gilstrap granted Apple’s request for a retrial, focusing solely on the issue of damages. The second trial, held in August 2021, resulted in a reduced damages award of $300 million. Despite this reduction, Apple remained dissatisfied and continued to challenge the verdict, arguing that issues with evidence, testimony, and jury instructions warranted a third trial.

Third Trial and Apple’s Victory

The third trial was initiated after the US Court of Appeals vacated the previous $300 million verdict, sending the case back for a jury to reconsider the infringement claims. The jury was presented with a straightforward question: Did Optis prove by a preponderance of the evidence that Apple infringed at least one claim from each of the following patents? The jurors unanimously answered no for each patent, leading to a complete victory for Apple.

An Apple spokesperson expressed gratitude to the jury, stating, We thank the jury for their time, and we’re pleased they rejected Optis’ false claims. Optis makes no products, and its sole business is to sue companies, which it has done repeatedly to Apple in an attempt to obtain an excessive payout.

Implications and Future Outlook

This verdict marks a significant setback for Optis, which has been pursuing similar claims against Apple in other jurisdictions, including the United Kingdom. In the UK, Optis initially sought $7 billion in damages and a global royalty rate. However, the UK High Court awarded a substantially lower amount of $56.43 million, plus interest. Optis appealed this decision, and in May 2025, the UK’s Court of Appeal increased the award to $502 million for the use of 4G patents in Apple’s devices.

Despite these ongoing legal battles, Apple’s recent victory in the US may influence proceedings in other regions. The UK is expected to consider the outcomes of the US case in its forthcoming decisions, potentially affecting the final resolution of the dispute.

Conclusion

Apple’s triumph in the third Optis patent trial underscores the complexities and challenges inherent in patent litigation, especially when dealing with entities primarily focused on monetizing patents through litigation rather than product development. This case highlights the importance of clear and fair legal processes in resolving disputes over standard-essential patents and FRAND licensing terms.