EIP Secures $700 Million Plus for Optis in FRAND Litigation Against Apple

In a judgment handed down today by the English Court of Appeal (Optis Cellular Technology LLC & Ors v Apple Retail UK Ltd & Ors [2025] EWCA Civ 552), EIP have secured a landmark decision for its client Optis in its FRAND litigation against Apple. In a 2023 ruling, Mr Justice Marcus Smith fixed the total license fee payable by Apple in respect of Optis’ portfolio of SEPs at $56.43 million. In its judgment today, the Court of Appeal increased the figure to $502 million. With interest, the total amount exceeds $700 million. This is the highest value court determined license of its type on record. In 2023, the Judge had relied on a large number of Apple licenses as evidencing what was a fair and reasonable license fee. However, in his judgment Lord Justice Birss ruled that “Apple’s Framework included indefensible elements such as an insistence on patent by patent licensing (which manifestly would involve a degree of hold out)” and therefore rejected Mr Justice Marcus Smith’s approach. Gary Moss, Chairman, who led the EIP Team said “It was the view of Optis and its legal team that the approach adopted by the Judge was misconceived and out of step with prior FRAND decisions. That view has been vindicated after today’s decision. This judgment will go some way to reestablishing the English courts as an appropriate jurisdiction in which SEP holders can litigate FRAND issues. I would like to pay tribute to the effort of the EIP litigation team and that of Osborne Clarke who were our co- Counsel on the case.”

Spotlight

AI and Bitstreams at the Core of China’s Patent Update

On April 30, 2025, the China National Intellectual Property Administration (CNIPA) released a draft amendment of the Patent Examination Guidelines (for public comment), proposing further revisions to the current Guidelines, which only came into effect in January 2024. The proposed amendments cover changes to formality examination, substantive examination, patent re-examination and invalidation and certain procedural matters related to patent examination. In summary, with AI and bitstreams as focal points, CNIPA’s latest proposal to further amend the Patent Examination Guidelines demonstrates China's ongoing efforts to refine and adapt its patent system in response to the needs arising from emerging technologies and its intention to encourage innovations and patent filings in the relevant industries. Meanwhile, the newly drafted Guidelines are intended to clarify examination standards for AI-related and codec and streaming media patent applications. By clarifying eligibility, patentability and drafting requirements for these applications, the Guidelines may provide innovators and patent practitioners with practical guidance for patent filings and prosecution. If adopted, the draft amendments are expected to have significant impact on not only patenting activities in AI and streaming media sectors, but licensing practices in China in the future. Highlights: AI and Bitstreams Highlights of the amendments to substantive examination include further clarification of the criteria for eligibility and patentability for applications related to artificial intelligence (AI), and the addition of a section on the examination of applications involving bitstreams. Notably, these amendments follow closely on the heels of the Guidance for Patent Applications for AI-Related Inventions (Trial Implementation), issued by CNIPA on December 31, 2024. This suggests that China is eager to strengthen its patent system by clarifying and adapting examination standards to address emerging technologies and some key issues of industry concerns. AI-Related Applications: Eligibility, Ethical Rejections, and Sufficient Disclosure In the current Guidelines, the examination of AI-related patent applications is covered under the section titled Examination of Invention Patent Applications Involving Features of Algorithms or Business Rules and Methods. Interestingly, the draft amendments propose changing the title of this section to Examination of Invention Patent Applications Relating to Artificial Intelligence, etc. This change appears to reflect an effort by CNIPA to distance AI-related inventions from business rules and methods—categories that are unpatentable—and to encourage more patent filings for AI-powered inventions in the future. A significant proposed change is that an AI-related application may be rejected on ethical grounds. The draft amendments specify that a patent will not be granted if the invention does not comply with laws, social ethics, or public interests—especially concerning data collection, labelling management, rule setting and recommendation decision-making by AI models. Two examples are cited as unpatentable for ethical reasons: one involving an AI model that collects customers’ facial information without consent and another involving an autonomous driving AI model that makes emergency decisions based on the gender and age of individuals on the road. The draft also introduces specific requirements for sufficient disclosure of the AI algorithm or model in the application specification, addressing the "black box" nature of such systems. This may lead to more frequent objections from examiners for insufficient disclosure during examination of AI-related applications, a concern traditionally limited to chemical and pharmaceutical patent applications. Consequently, insufficient disclosure might also become a more common ground for invalidation of AI-related patents when the validity of a patent is challenged. Bitstreams: Examination Standards and Licensing Implications in the Streaming Media Sector The draft amendments also propose a new section outlining examination criteria for patent applications involving bitstreams, following the section on AI-related applications. This addition aims to clarify the eligibility and requirements for the specification and claims for applications for codec and streaming media technologies. It can have great impact on preparation and prosecution of patent applications for these inventions. Regarding eligibility, the draft states that a claim involving mere bitstreams falls under rules and methods of mental activities and is thus unpatentable. To qualify for patent protection, codec and streaming media inventions must constitute a "technical solution" as defined in Article 2.2 of the Patent Law of China. This approach mirrors the examination standard for AI-related inventions. For claims involving codec and streaming technologies, it is proposed that they may be drafted in various formats—such as a coding/decoding method for generating bitstreams, a method for storing/ transmitting the claimed bitstream, a device for implementing the claimed methods and corresponding computer-readable storage medium claims. According to the Explanatory Notes issued with the draft amendments, these claim types are intended to align with the evolving structure of the streaming media industry and offer right holders protection for “one of the links” in the industry chain. The Explanatory Notes specifies that the aim is not to enable a right holder to assert rights across multiple links in the industry chain for licensing returns that is disproportional to its technical contribution to the industry. This stance reveals CNIPA's view on licensing in the codec and streaming media sector. As explained in the Explanatory Notes, the industry chain of the streaming media sector is fragmented, involving multiple parties across different layers of content creation, storage, and transmission etc. Given this, CNIPA appears to oppose the licensing practice of right holders charging multiple players in different layers of the industry chain for their using the same technology. The CNIPA’s position appears to be that the licensing income obtained from various players in different layers of the industry chain is disproportional to the technical contribution of the right holder to the industry. In doing so, CNIPA appears to address the concerns of some stakeholders in the industry about the so-called “repeated charges” for licensing fees, which may be incurred to different implementors at different levels of the industry chain including hardware manufacturers and streaming platforms, as the result of the licensing practices of some right holders and patent pools in the industry. This issue has long been a topic of debate in China. CNIPA’s position may have significant implications for future licensing practices in the sector. Patenting Expertise in China With deep knowledge of the Chinese market, we offer tailored IP advice specific to China backed by the firm’s broader international expertise, aligning your patent strategies with local demands. We provide practical, market-driven insights to help you navigate China’s complex IP landscape.

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Quantum Sensors: What are they and why do they matter to healthcare?

The UN says we are in a year of quantum, celebrating 100 years since the development of quantum mechanics. While quantum computing is often the main talking point, the other areas of quantum tech, such as quantum sensors are getting increased attention as well. But what are they? And what relevance do they have to biotech and healthcare applications? Quantum sensors is a broad category of sensing devices that rely on quantum mechanical phenomena to improve their effectiveness compared to “classical” sensors. The main phenomena relied on are: Quantum interference – matter can display wave-like properties, in which particles interact with each other and add together or subtract from one another, creating patterns of interference. These patterns change when changes in the source of the wave signals occur. Minuscule changes can be detected readily by changes in the interference pattern. Quantum entanglement – when two particles become entangled, the measurements of one particle can be correlated with measurements of the other particle, even if separated by great distances. More than two particles can become entangled together Interfering Squids Interference-based quantum sensors rely on the measured interactions of two wave systems interfering with one another. A common form of interference-based sensor is a SQUID (Superconducting Quantum Interference Device). These ultrasensitive magnetometers detect the current which passes through a pair of superconductors via quantum tunnelling. Quantum tunnelling is a phenomenon where particles can pass through a barrier (whether a physical barrier or an energy requirement) even though considered as classical particles they should not be able to. The difference in phase of the current passing through each superconductor of the pair creates an interference pattern. External magnetic fields affect this interference. This can be used to detect even minute magnetic fields. SQUIDs have been used in brain and cardiac imaging to detect disease for decades. Neurons in the heart and brain have ion currents that produce magnetic fields which can be detected by arrays of SQUIDs outside the body. Such detection is called magnetocardiography, MCG (heart) and magnetoencephalography, MEG (brain). You may be familiar with the more commonly used EEG (electroencephalogram) or ECG (electrocardiogram) which use electrodes to measure electrical activity around and near the heart and brain. Both can be used to detect signal patterns in the tissue which are indicative of disease. Magnetic imaging has the advantage that body tissues are magnetically transparent such that magnetic fields propagate from inside the body to the outside without distortion. Contrastingly, electrical signals are heavily distorted by insulating tissues such as the skull. However, this magnetic transparency does present a difficulty of how to localise the signals to specific parts of the tissue. MEG systems often have arrays of hundreds of SQUID sensors to help overcome this problem. Furthermore, the need for cryogenic cooling and magnetic shielding from outside signals have slowed the adoption of this technology compared to ECG/EEG and MRI (magnetic resonance imaging). Tangled scopes Entanglement-based quantum sensors use two particles which have been “linked” or “entangled”. When entangled particles are measured, the measurements will be strongly correlated. Entanglement is of particular interest in quantum cryptography but there are quantum sensors which take advantage of this property as well. Light microscopes typically cannot resolve subjects smaller than half the wavelength of light used to illuminate the subject. For violet light, this means there is a classical limit where details smaller than 0.2 µm cannot be resolved and seen. This makes it difficult to see anything smaller than an organelle inside a cell. This can be overcome to some extent by using shorter wavelengths of light, pushing into the ultraviolet (UV) part of the spectrum. However, UV light tends to chemically modify substances, typically photobleaching and damaging cells. By using a coherent light source (like a laser) and “splitting” photons into entangled photon pairs, one photon in the pair can be used to image the sample and another photon can be directed to a separate detector. By comparing the measurements of the entangled photons, noise present in both detections can be identified and removed since the measurements are correlated. This leads to a significant improvement in signal-to-noise ratio, which can increase the angular resolution beyond the classical limit itself and/or reduce the intensity of illumination required. Such quantum light microscopes can observe significantly smaller parts of cells. This is particularly useful for imaging living cells as while electron microscopes have much higher resolution, the observed samples typically have to be prepared in ways that are damaging, if not lethal, to cells. These quantum microscopes have higher resolution without damaging the sample. Quantum diamonds Other quantum sensors rely on quantum states that are relatively stable, but are affected by the environment and can be read to provide measurements. For example, Nitrogen Vacancy (NV) centres use diamonds where two adjacent points in the diamond’s carbon-atom crystal lattice structure are different. For the first point, the carbon atom is missing; for the second point, the carbon atom is replaced with a nitrogen atom. The outer unbound electron on the nitrogen atom has 3 different spin states called 0, +1, and -1. The -1 and +1 states are higher energy than the 0 state and microwave photons can move the NV centre from 0 to -1/+1. These states fluoresce differently, allowing the spin state of the NV centre to be measured optically. Interestingly, the energy levels of these individual spin states are affected by the environmental conditions such as external magnetic and electric fields, temperature, and mechanical strain, causing their fluorescence to change. This allows these parameters to be measured. Like SQUIDs, NV centres may be used for MEG/MCG as discussed above. NV centres do not have the extreme level of sensitivity that SQUIDs do, but they are much easier to work with due to the reduced need for cryogenic cooling. NV centres are also being investigated for use as qubits in quantum computers. It’s important to understand that quantum sensors are not necessarily tied to quantum computers; existing quantum sensors typically feed their data into classical systems for analysis. However, as quantum computing matures, qubits may be able to directly process the quantum information measured by these sensors, potentially allowing them to interrogate the data more efficiently and with greater fidelity. So what is holding quantum sensors back in healthcare? Quantum sensors are a relatively developed part of the quantum technology landscape with many of these technologies becoming available in biotech research labs and specialist medical environments over the past decade or so. These tools have been used in areas like physics research, geological surveying, and timekeeping for much longer. However, the pipeline of tech transfer from the lab to commercially available medical device is not well established. Additionally, there are currently issues with cost and how delicate these sensors can be. Many quantum sensors rely on cryogenic conditions. Hospitals are somewhat used to managing the cryogenics of MRI machines at around 4 Kelvin but some quantum sensors require temperatures significantly closer to absolute zero. Quantum sensors can require more shielding to focus their sensitivity on the desired target e.g. magnetic sensors require significant shielding from external magnetic fields to make them effective. Looking to the future With continuing development, quantum sensors should help to significantly improve the ability to understand disease, particularly at the smallest scales e.g. measuring the magnetic/electrical activity of neurons across the whole brain to understand brain disease. In the future, we expect quantum sensors will see widespread use in healthcare comparable to classical sensors such as MRI and ultrasound. They may even supplant them in some cases! The significant interest in quantum sensors for military and space applications should also lead to acceleration of this technology area more generally and translate to useful technologies in the civilian world. Quantum sensors are of particular interest in the military for their radio frequency (e.g. radar) sensitivity, as well as in navigation technologies not reliant on GPS. By comparison, Infrared ear thermometers, LASIK (laser eye surgery), and of course the reflective “space blanket” were all derived from technologies developed for military and space applications. We are already starting to see translation of this technology to practical medical devices. Research by the University of Nottingham and its spin-out Cerca Magnetics into optically pumped magnetometers has allowed Cerca to produce a MEG system that is significantly more convenient to use (essentially a helmet rather than a large machine) that does not require cryogenic cooling. We expect to see continued development and commercialisation of this technology by Cerca, and a significant growth in quantum medtech-focused spin-outs, start-ups and scale-ups as the path to market is established. Investment and collaboration are needed to push quantum technologies into the forefront of medical care. We are already seeing this, such as with the December 2024 launch of the UK Quantum Biomedical Sensing Research (Q-BIOMED) hub led by UCL and the University of Cambridge with £24 million of government funding. Patents will play a significant role as a means to support and protect the commercialisation of these technologies. With a means to protect the R&D investment, intellectual property will help to build a pipeline of technology transfer from continuing research into commercialisation. How companies are building out their patent portfolios in this space will be explored in a future article.

Exploring IP in a Space Sector Product

Introduction Innovative space sector businesses generate IP all the time. But it can be difficult to appreciate the range of IP being generated, or the value of that IP. In order to help illustrate, we’ve come up with a space sector product of our own*. We’ll use this product as the basis of a worked example, to show the range of IP that could potentially be protected, and the value that this could provide. *This is not a real product. The idea was inspired by this NASA document on State-of-the-Art of Small Spacecraft Technology, published 12 February 2024. The imaginary product is for the purposes of illustrating example IP issues only, and it is not intended to relate to any existing (or future) actual product. Technological background to the product The linked NASA document explains that the two main modes of communication between ground terminals and satellites are FSO (Free Space Optics) and RF (radio frequency). This is because the atmosphere and the ionosphere together are opaque in other parts of the electromagnetic spectrum. As the document states, there are advantages and disadvantages to each of FSO and RF. However, wouldn’t it be useful to have a communications terminal with the advantages of both? The product The (imaginary) product is a communications terminal that combines both FSO and RF transceivers, and which has a controller that controls whether FSO, RF or both are used in communications, so that at any given time, the most appropriate mode is used. The control is based on multiple input measurements representing the current environmental and/or operational conditions. Example measurements include: the data rate needs (FSO allows a higher data rate so may be preferable when high data rate applications are in use, or both FSO and RF may be used together to maximise data rate); the weather conditions in the communications path (FSO is more affected by cloud cover so in this case it may be better to use RF). These measurements are input to a control algorithm, implemented in software, which outputs a determination of whether RF or FSO or both should be used for the current conditions. For example, the algorithm might involve a look-up in a database storing empirically derived mappings of conditions onto communication modes. A controller controls the terminal to use RF and/or FSO based on the output of the algorithm. The control may be performed by either the ground station terminal or the satellite terminal. The control result determined by one terminal may be communicated to and used by the other terminal. It is also conceivable that the control may be performed by another entity (such as a datacentre at which the algorithm is executed) in communication with the ground station and/or the satellite terminal. Exploring IP Possible IP in the product Possible IP in the product might include (among others): patentable inventions in the control technique and the terminals; copyright in the code for executing the control; possible database rights in the database. Protecting the IP The product and/or control technique could in principle be protected using Trade Secrets or Patents. A trade secret is confidential know-how or other information that is valuable to a business because it is secret, and for which reasonable steps have been taken to keep the information secret. If someone obtains a trade secret without the owner’s permission, then remedies can be sought in court, such as an injunction and damages. A patent is a time-limited (up to 20 years) right to prevent others from using the owner’s (new and non-obvious) invention in a given territory. A patent would be obtained by filing and prosecuting to grant a patent application for the invention. Not all software is patentable. However, we believe the present control technique would be considered patentable (e.g. at the European Patent office and the UK IPO) as it controls a technical process. In contrast, it may not be possible to rely on trade secrets to protect the control technique. For example, if the control is performed at a ground station, which may be sold unconditionally or otherwise available to the public, then trade secret protection may not be available as it may not be possible to keep the control process a secret. Further, patent protection could offer stronger protection for the control technique than trade secret protection, as it would provide protection even where information about the process is later publicly leaked or disclosed, and even where someone else later comes up with the same idea independently. (For a more detailed comparison of Trade Secrets vs. Patents in the UK space sector, please see our related article here). It would therefore be worthwhile to consider applying for patent protection for the control technique invention (assuming of course that the control technique had not yet been publicly disclosed). The copyright in the code for executing the control process exists automatically (provided the code is original). Copyright allows the owner to prevent others from copying or distributing the code (or adaptations of the code) without permission. Similarly, a database right in the database may exist automatically (provided there has been sufficient investment in obtaining, verifying or presenting the data). Unlike copyright, the data does not have to be original. The database right allows the owner to prevent others from extracting data from, or otherwise reutilizing, a qualifying database. The value in the IP Patenting the control process would provide a right to prevent others from performing the same invention (even if they later come up with the same idea independently), which would give a significant competitive edge. Alternatively, the patent rights could be sold or licensed to others, which may generate significant revenue streams. Further, the patent (or patent application) would be valuable tool for attracting investment and for marketing the innovation. The copyright in the code could be licensed to others to use. This could provide an additional source of revenue. Alternatively, the code could be released under an open source software license, which might promote others to adopt the control protocol, which may in turn improve uptake (and hence sales) of the product. Similarly, the database right can be licensed for others to use the database. This may offer a means by which the investment in obtaining the empirical data can be monetized. What and where to patent A patent application for this product might include claims covering the control method, the terminal, the system of the ground station and satellite terminals (as well as other control entities); and a computer program that performs the control method. This would allow patent protection to be pursued for a wide range of aspects of the product. Regarding where (i.e. in which jurisdictions) to apply for patent protection, the method may be performed by a ground station, a satellite, or possibly another entity (such as a datacentre executing the control algorithm). For space objects such as a satellite in space, the relevant jurisdiction is the state where the space object is registered for launch (for more detail on this, see the ‘patent’ section of our related article here). Accordingly, it would be prudent to consider applying for patent protection in the main jurisdictions where the ground station will be manufactured, sold, or used; where the satellite will be manufactured or registered for launch; and/or where the control algorithm is likely to be executed. It is noted that the new European patent with unitary effect (the so called unitary patent) can provide uniform patent protection in multiple EU member states (currently 18 at the time of writing). Accordingly, an example patent strategy for this product might be to file a patent application in Europe (at the European Patent Office) and the US (at the US Patent and Trademark Office). If granted, these would together provide wide coverage across Europe and the US. Other IP considerations It might be that the control algorithm is implemented using (someone else’s) open source code. In that case, it would be important to make sure that the obligations of the open source licence(s) under which the code is provided are identified, understood, and complied with. If this is not done, then this opens the risk of copyright (and possibly also patent) infringement. Further, it may be that aspects of the product or control process are covered by someone else’s existing patents. It is generally advisable to perform a Freedom to Operate search for patents covering the product in relevant jurisdictions, in order to be better informed of the potential infringement risks that may exist. Further, it is generally better to know about infringement risks and manage them in advance, if possible, in order to avoid surprise “cease and desist” letters after the product operation and marketing is already in full swing. Conclusion As we’ve seen in this worked example, a space sector product can involve various forms of IP. Protecting this IP can provide not only a competitive advantage, but value in other forms, such as opening up additional revenue streams, attracting investment, and promoting uptake. An effective IP strategy will look to maximise the value in the IP, to help provide the best possible outcomes for the business. If you would like to discuss protecting IP in your product, or ways of optimising your IP strategy, do feel free to get in contact.

EIP client Pulpex completes successful Series D funding

Leading IP firm EIP has advised sustainable packaging technology company Pulpex Limited on its successfully closed £62m Series D investment round. The National Wealth Fund (NWF) has committed £43.5m in direct equity, with a £10m co-investment from the Scottish National Investment Bank and the balance from existing investors. The funds raised will be used to build Pulpex's inaugural commercial-scale manufacturing plant near Glasgow, representing the NWF's first investment in Scotland since its transformation. This facility will have the capacity to make 50 million bottles annually and will create the UK's first fibre bottle supply chain, thus driving the decarbonisation of the packaging sector. Based in Cambridge, UK, Pulpex uses sustainably sourced fibre to produce renewable, recyclable and biodegradable bottles, intended to be processed just like paper or cardboard in standard household recycling systems. Its patented and scalable technology produces an end-product that has a lower carbon impact compared to existing glass or plastic packaging formats. IP and its protection are central to the business’s commercial plan. EIP has worked closely with Pulpex since its early stages and has three patent attorneys on part-time secondment to advise on IP strategy and provide a pseudo in-house IP function. It also has commercial IP lawyers who advise on IP-related agreements and help navigate due diligence exercises, and a wider team of patent attorneys in the UK and US who protect the company’s technology around the world as required. Pulpex CEO, Scott Winston, comments: “Having a robust and synergistic partnership with EIP not only protects our core business in the day-to-day but provided all the support we needed for an efficient Series D fund-raising process, notably in a market environment where extra emphasis is placed on IP assets and their value assessment as a driver of growth. Continuing to work as a fluid team at all times has been a cornerstone of our success to date and will be for the future of Pulpex.” EIP Partner, Rick Gordon-Brown, comments: "We are honoured to have supported Pulpex in securing this significant investment, which is a testament to their groundbreaking research and development work. This funding will not only enable the construction of their first commercial-scale manufacturing plant but also drive growth in Scotland and the broader alternative packaging industry. At EIP, we are proud to collaborate with Pulpex by providing essential services that protect their IP and support their commercial strategy, and are delighted that they are on track to achieve their business goals and deliver a more sustainable future." The EIP team working with Pulpex includes: Patent attorneys: Rick Gordon-Brown, Paula Flutter, Rob Barker, Eric Williams, Ben Willows, Tim Belcher, Carl Bryers, Rebecca Oliver, Jack Lindley-Start, Samuel Meacham, Simona Misakova Solicitors: Mark Lubbock, Ellen Keenan O’Malley, Liam Rhodes

News Flashes

Quantum Sensors: What are they and why do they matter to healthcare?

The UN says we are in a year of quantum, celebrating 100 years since the development of quantum mechanics. While quantum computing is often the main talking point, the other areas of quantum tech, such as quantum sensors are getting increased attention...

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Company

EIP Announces Promotion of Ben Maling to Partner

We are delighted to announce the promotion of Ben Maling to Partner, effective from April 1, 2025. Ben's extensive experience in artificial intelligence aligns perfectly with EIP's commitment to staying at the forefront of technological advancements an...

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EIP US team strengthened by new lateral hires

EIP is excited to welcome the addition of Amy Salmela and Peter Prommer to our US team, solidifying our growing commitment to that market. Amy Salmela joins as a Partner and brings over 20 years of experience in advising clients on all aspects of US ...

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EIP launches Ampliphy

EIP has launched a new strategic IP and legal service specifically for semiconductor chip designers and deep tech electronics and photonics companies called Ampliphy. The service is designed to help early stages companies develop effective IP strateg...

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Resources

What SMEs Should Know About The IP Audits Plus Scheme

What SMEs Should Know About The IP Audits Plus Scheme

Designed by the UK Intellectual Property Office (UKIPO), the IP Audits Plus Scheme gives high-growth SMEs the opportunity to understand and assess their IP further. The scheme supports SME growth by offering financial support towards an IP audit. Th...

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