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The Federal Circuit ordered a retrial after finding that flawed jury instructions improperly combined multiple patent claims, potentially affecting Apple's right to distinct verdicts.
A US appeals court has overturned Apple’s $300m verdict. (Photo: Valeriya Zankovych/Shutterstock)
The US Court of Appeals for the Federal Circuit has ordered a retrial in a case involving Apple and Optis Wireless Technology, overturning a $300m jury verdict against the iPhone maker. The decision stems from procedural issues in the Texas trial, where Apple was found to have infringed on wireless standard-essential patents owned by Optis.
The Federal Circuit identified flaws in the jury instructions from the original trial, which improperly merged multiple patent claims into a single question. This consolidation potentially affected Apple’s right to separate verdicts on each claim, prompting the court to send the case back for a new trial focusing on both infringement and damages.
Optis and its affiliates, including PanOptis Patent Management and Unwired Planet, initiated legal action against Apple in 2019, alleging infringement of several patents essential to the LTE wireless standard. A jury initially ruled in 2020 that Apple had to pay $506m in damages. US District Judge Rodney Gilstrap later ordered a new trial on damages only, due to concerns about Optis’ obligation to license its patents on fair and reasonable terms (FRAND), resulting in a revised award of $300m.
Based in Texas, Optis maintains an extensive global portfolio of patents essential to 3G and 4G LTE technologies. These patents encompass critical components in smartphone and tablet interfaces, including core chipsets, modulation methods, battery management systems, antenna structures, and power management systems.
Federal circuit ruling requires comprehensive retrial on all legal claims
The appeals court’s latest ruling mandates a full retrial, examining all claims of infringement and the corresponding damages. The panel emphasised that by combining all patent claims into one infringement question, the original proceedings deprived Apple of distinct unanimous verdicts on each claim.
Despite the appeals court’s decision, an Optis spokesperson, according to reporting by Reuters, expressed confidence in future proceedings. The spokesperson indicated that Optis believes that these proceedings will secure fair compensation for their patents, which are integral to enabling high-speed connectivity in Apple’s devices.
In separate proceedings in the UK, Apple is also facing legal challenges concerning standard-essential patents. Last month, the UK Court of Appeal ordered Apple to pay $502m to Optis for a global licence covering 4G technology patents. This settlement covers usage from 2013 to 2027, without interest.
This UK decision follows earlier High Court proceedings where Optis argued for significant compensation due to Apple’s use of their essential patents within 4G technologies. Initially awarded $56.43m plus interest, Optis contested this amount as insufficient and pursued further legal action, resulting in the increased award from the Court of Appeal.
Meanwhile, Apple moved a legal challenge, earlier this month, against a European Union (EU) directive that mandates the company to open its closed ecosystem to rivals such as Alphabet’s Google and Meta. Apple’s contention is that the EU’s demands are unreasonable and hamper innovation.
Read more: Apple challenges EU order to open ecosystem to rivals
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