Apple Faces $110M Fine after Losing 3G Wireless Patent Case

Apple just got hit with a massive $110.7 million penalty after losing a patent lawsuit against Spanish company TOT Power Control. This case is about how your iPhone, iPad, and Apple Watch connect to 3G networks.

Here’s What Happened

TOT Power Control, founded by Spanish engineer Alvaro Lopez-Medrano, owns patents on how devices manage power while handling signal interference. Basically, it helps your phone save battery and keep stable connections by adjusting power based on signal quality.

Back in 2021, TOT sued Apple, claiming its devices used this tech without permission. TOT said it had asked Apple and its chip suppliers to license the technology, but Apple refused.

• A Delaware jury found Apple guilty of infringing TOT’s US Patent Number 7,532,865 related to 3G.
• Apple argued these patents were invalid, but the jury disagreed.
• TOT was awarded $110.7 million, calculated as a “running royalty” of 25 cents per infringing device sold.

Apple told Reuters it is disappointed with the ruling and plans to appeal. In the past, Apple has invalidated patents in similar disputes, but not this time.

What is TOT Power Control?

TOT Power Control doesn’t make phones or devices. It creates and sells its wireless technology patents. Its system helps phones save battery and connect better by adjusting power based on signal strength and noise. TOT earns money by licensing this tech and has sued Samsung, LG, Verizon, AT&T, and T-Mobile for using it’s tech without permission.

Is TOT a Patent Troll?

Some call TOT a patent troll since it doesn’t make products, but it actually develops its own algorithms and patents them. It acts as a licensing and marketing arm for its parent company, Top Optimized Technologies, licensing these innovations to carriers to optimise 3G networks.

While $110 million sounds huge, it’s not Apple’s largest patent penalty. For example, it faced a $502 million payment in a UK lawsuit with Optis Cellular over 4G patents, though it recently dodged a $300 million payout in a similar US case.

TOT’s CEO said they are “thrilled” the jury validated their patents. For Apple, this is another costly reminder that even the smallest tech pieces come with powerful legal baggage.