On Friday, 25 September, a federal jury in San Diego determined that Apple must compensate Taction Technology, a small San Diego-based haptics firm, with over $5.7bn for patent infringement. This verdict represents the largest patent damages award ever issued in United States legal history, according to reporting by Law360.
The dispute centres on Apple's Taptic Engine, the component responsible for generating the vibrations and taps that users experience in iPhones and Apple Watches when receiving notifications or interacting with buttons. The jury determined that this technology violated claims contained in two of Taction's patents, which specifically address methods for creating tactile vibrations. Nevertheless, jurors concluded that Apple's infringement was not deliberate, which means Taction is unable to petition the court for an enhancement of the damages award.
Apple has rejected the decision and announced its intention to challenge it. The company stated: "Apple's Taptic Engine is fundamentally different from Taction's technology, which Taction's own testing of Apple's products confirmed during trial."
Taction, which develops haptic solutions for headphones and gaming headsets, initiated its lawsuit against Apple in 2021. A judge initially sided with Apple in 2023, but the US Court of Appeals for the Federal Circuit reinstated the case the following year. The trial itself commenced on 14 September of this year.
According to Lance Yang, Taction's principal attorney, "Taction waited five and a half years for this case to get to trial, so it was a long time coming." He shared this observation with CNBC following the verdict.
The litigation was supported through external funding, with investment entities connected to litigation funder Burford Capital providing financial backing for Taction's case, as reported by Bloomberg Law. Such funders typically cover lawsuit expenses in exchange for a percentage of any awarded damages.
The $5.7bn award significantly exceeds the previous record. In 2021, a jury in Texas ordered Intel to pay $2.18bn to patent holder VLSI Technology, though that verdict was subsequently overturned on appeal. The current figure remains subject to further legal proceedings, as Apple retains the ability to challenge it through post-trial motions before the trial judge and subsequently at the Federal Circuit.
Source: The Next Web
