Apple loses patent infringement law suit; Jury orders $506 Million damages

Apple has been ordered to pay $506 million in damages for infringing upon patents held by PanOptis and related companies, according to a court ruling. The decision was given by Eastern District of Texas federal jury which ordered Apple to pay a group of telecom companies $506 million for wilfully infringing patents covering 4G LTE technology in iPhones and other devices.

The lawsuit centered around a handful of Optis Wireless patents, all of which related to the use of LTE cellular technology in the iPhone, Apple Watch, and iPad. The jury in Marshall, Texas, which found that five patents were infringed also found that the infringement was wilful, which could mean an increase in the damages.

Apple tried to prove during the trial that it had not infringed on the technology in the patents to access LTE networks. According to Apple, it had not infringed on the patents in question. Apple further argued that the iPhone’s compatibility with LTE — like other smartphones on the market – was not evidence of infringement.

On the other hand, Optis Wireless contended that Apple refused to enter a licensing agreement with Optis and infringed on its patents. Optis Wireless argued that it had offered Apple a “global license” for using the standard-essential patents related to LTE which was in compliance with its “Fair, Reasonable, and Non-Discriminatory” obligations. Optis Wireless argued that it had “repeatedly” negotiated with Apple about an agreement, but the negotiations were unsuccessful.

The Jury Despite held that Apple had failed to prove that the Optis Wireless patent claims are invalid and therefore directed Apple to pay $506 Million to Optis Wireless and its related companies for past sales.