On Monday, Apple celebrated a major legal triumph in its persistent patent contention with Optis Wireless Technology, as the U.S. Court of Appeals for the Federal Circuit annulled a $300 million damages award that had previously been levied against the company. This ruling signifies the second time a substantial damages verdict in this matter has been revoked, necessitating a return to Texas for a new trial.
### What’s this case about again?
The dispute commenced in 2019 when Optis, a Texas-based firm specializing in intellectual property management, initiated legal action against Apple, claiming that the iPhone and other Apple products violated several LTE-related patents. In 2020, an initial jury sided with Optis, granting the firm $506 million in damages. Nonetheless, this ruling was subsequently overturned by District Judge Rodney Gilstrap, who mandated a new trial to reevaluate the damages, arguing that the original amount did not sufficiently represent Optis’ responsibility to license its standard-essential patents under fair, reasonable, and non-discriminatory (FRAND) terms.
In the following trial, a second jury awarded Optis $300 million. Apple contested this ruling, and despite signs that it would not have another chance, the company successfully won the appeal, leading to a new trial.
### Why this latest verdict got overturned
The Federal Circuit’s decision emphasized not the amount of damages, but the jury’s deliberation process. The three-judge panel concluded that Judge Gilstrap’s jury instructions wrongly amalgamated several patents into a singular infringement inquiry. This method deprived Apple of its entitlement to a unanimous verdict on each distinct legal claim against it. As a result, the jury was not allowed to assess each patent individually, leading to the determination to return the entire case to Texas for a retrial that would include both infringement and damages.
### International Implications
For those remembering that this case possesses international aspects, it is important to note that Optis is advancing similar allegations against Apple in the UK concerning related LTE patent infringements. Recently, a UK court determined that Apple owes Optis around $502 million. Apple has expressed intentions to appeal this verdict, and the recent U.S. ruling may afford its legal team additional leverage on the international front.
