Unanimity on Trial: Federal Circuit Tosses $300 Million for Optis in Apple-Optis LTE Patent Wars

"The Federal Circuit's analyzed proper jury verdict form procedures and evidentiary rules in the context of LTE standard-essential patent litigation between Optis and Apple. The Court addressed the intersection of jury unanimity rights, the validity of SEP claims under the abstract idea doctrine and means-plus-function rules, and the admissibility of FRAND-related settlement evidence under Rule 403. Background Optis Cellular Technology, LLC and related entities ("Optis") sued Apple Inc. in the Eastern District of Texas, alleging infringement of five LTE alleged standard-essential patents ("SEPs")."

"The Eastern Texas District Court's first set of jury instructions asked, "Did Optis prove by a preponderance of the evidence that Apple infringed ANY of the [a]sserted [c]laims?" The jury initially found for Optis, awarding $506.2 million in damages as a reasonable royalty. Apple moved for a new trial, arguing the jury did not hear evidence regarding Optis's obligation to license the patents on FRAND terms. The District Court granted a retrial on damages only (not liability), resulting in a $300 million jury award."

Optis sued Apple in the Eastern District of Texas alleging infringement of five LTE standard-essential patents and claimed Apple refused FRAND licensing. The District Court's initial verdict form asked whether Optis proved infringement of any asserted claim, and the jury awarded $506.2 million. Apple sought a new trial, arguing FRAND licensing evidence was absent, and the court granted a damages-only retrial, which produced a $300 million award. The Federal Circuit addressed whether a single infringement question violated unanimity rights, whether certain claims were invalid under Section 101 and 112, proper claim construction, and inclusion of FRAND settlement evidence under Rule 403.

Read at Intellectual Property Law Blog