US Jury Orders Apple (discover more) (get the details) to Pay Taction $5.7bn Over iPhone Haptics Patents
A federal jury in San Diego has ordered Apple to pay more than $5.7bn to Taction Technology, a small haptics company, for infringing two of its patents. The verdict, reached on Friday, 25 September, covers Apple's Taptic Engine, used in iPhones and Apple Watches, and is the largest patent award in US history, according to Law360.
The case centres on the vibrations produced by Apple’s Taptic Engine for alerts and button presses. The jury found that it infringed claims in both of Taction’s patents, which cover specific vibration techniques. However, they also determined that Apple did not infringe intentionally, precluding Taction from seeking increased damages.
Apple has rejected the verdict and announced its intention to appeal. "Apple’s Taptic Engine is fundamentally different from Taction’s technology, which Taction’s own testing of Apple’s products confirmed during trial," the company stated.
Taction, based in San Diego, develops haptic technology for headphones and gaming headsets. It sued Apple in 2021. A judge initially ruled in Apple’s favour in 2023 but the US Court of Appeals for the Federal Circuit revived the case last year, leading to the recent trial.
"Taction waited five and a half years for this case to get to trial, so it was a long time coming," said Lance Yang, Taction’s lead lawyer, according to CNBC.
The lawsuit was financed with help from external investors. Investment vehicles linked to litigation funder Burford Capital supported Taction’s case, Bloomberg Law reported. Such funders cover legal costs in exchange for a share of any damages awarded.
The $5.7bn award surpasses the previous record set in 2021 when a Texas jury ordered Intel to pay $2.18bn to patent holder VLSI Technology (later reversed on appeal). The current figure is not final, with Apple having the option to challenge it through post-trial motions and appeals.
By: Alina Maria Stan