Apple Hit With $5.7 Billion Patent Verdict Over iPhone, Apple Watch Haptics

Apple Inc. (NYSE:AAPL) has been hit with a multibillion-dollar patent damages award after a federal jury in San Diego concluded the company infringed two patents held by haptics firm Taction Technology. The panel set damages at more than $5.7 billion, a major courtroom setback for the iPhone maker.

Apple to Challenge Outcome

According to a report by CNBC, Taction filed the case in 2021 in federal court in Southern California, accusing Apple of selling products that used its vibration-related inventions without permission. Apple said it plans to challenge the outcome, disputing both the infringement finding and the size of the damages.

"While we thank the jury for their consideration, we strongly disagree with today’s verdict and the damages awarded, which are entirely unsupported by the facts," Apple said in a statement to CNBC.

The dispute focused on two U.S. patents tied to haptics, the hardware and methods that create tactile feedback so users can feel responses from a device. According to the report, Taction argued Apple’s Taptic Engine in products including iPhones and Apple Watches relied on Taction’s patented work without a license.

Taction Says ‘Vindicated’

The trial started Sept. 14 and jurors deliberated for two days after testimony ended before returning the verdict Friday afternoon. The jury did not conclude that Apple’s infringement was willful.

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Taction’s lead lawyer Lance Yang said in a statement to CNBC, “We’re happy the jury found for Taction and vindicated its patent rights.” Yang added, “Taction waited five and a half years for this case to get to trial, so it was a long time coming.”

The verdict represents one of the largest patent damages awards against a technology company and the largest U.S. patent verdict to date, according to a Reuters report.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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