Apple Loses UK Patent Appeal Over Essential Technologies Used in iPhones

Apple Inc. lost a London appeal over essential technology patents that are used in iPhones.

The Court of Appeal upheld a previous decision that Optis Cellular Technology LLC can restrict Apple from using the crucial patents for 3G and 4G telecommunications unless Apple commits to fair and reasonable terms of use.

The dispute is a part of long running legal standoff between Apple and Optis that has spilled into six separate trials and multiple UK appeals. The case could set a precedent as it concerns the licensing of standard essential patents -- technology that is crucial to the running of specific products or services.

Optis first sued Apple in UK in February 2019 alleging Apple infringed eight of its patents. Apple countered that Optis has abused its dominant position.

They may have to commit to take a court-determined rate once a patent is found valid and infringed, or risk their products being blocked from the U.K.

Emails to Optis and Apple seeking comment were not immediately answered.

The litigation between the companies reflected “dysfunctional state of the current system” for determining disputes over standard essential patents and fair terms, the judges said in the ruling. “Each side has adopted its position in an attempt to game the system in its favor.”