A landmark UK patent ruling today requires Apple to pay Texas-based cellular technology company Optis more than $700 million. In London, the Court of Appeal of England and Wales ruled today that Apple must pay Optis Cellular Technology LLC one-time compensation of $502 million for its use of standard-essential 4G patents on iPhones and iPads between 2013 and 2027-14.

The verdict was a significant increase from the $56.43 million originally awarded by the high court in 2023. In addition to the revised damages, the new verdict also includes interest, which could exceed $200 million, bringing Apple's total liability in the case to more than $700 million.

The dispute centers on whether Apple breached its obligation to license the patents on fair, reasonable and non-discriminatory (FRAND) terms, which are required by international standards for the use of basic wireless technologies. Optis is a Texas-based entity that does not manufacture products but holds and licenses the intellectual property. The company first filed the case in London in 2019.

Apple has previously argued that the patent rates proposed by Optis are too high and inconsistent with FRAND principles. "We are disappointed with this decision and plan to appeal," Apple said in a statement provided to Reuters. "Optis does not make any products and its only business is suing companies that use the patents it purchased. We will continue to defend their attempts to extract unreasonable compensation.""

The award is considered one of the largest patent damages awards in UK history. Apple has previously expressed concerns that an adverse royalty ruling could be grounds for withdrawing from the UK market, according to legal documents. Although the company later changed its position, the $700 million verdict brought the case closer to the worst-case scenario than expected after the high court's initial ruling.

Apple can still apply to the UK Supreme Court to review the case, but such appeals are usually only granted in limited circumstances, such as where important legal points or issues of public interest are involved.