Apple Hit With $5.7bn Patent Infringement Verdict

Apple has been ordered to pay more than $5.7bn after a federal jury found the company infringed two patents held by Taction Technology covering technology used to provide haptic feedback in devices.

The patents relate to technology behind the vibrations users feel when receiving notifications, pressing buttons or interacting with other functions on electronic devices.

A jury in the US District Court for the Southern District of California found that Apple had infringed Taction's patents. The San Diego-based company had brought the case against Apple in 2021.

"We're happy the jury found for Taction and vindicated its patent rights," Taction attorney Lance Yang said following Friday's verdict.

The legal dispute has been through several stages. In 2023, a federal judge ruled that Apple had not infringed Taction's patents. The case was later revived by an appeals court, allowing the patent dispute to proceed to trial.

Taction alleged in its original complaint that Apple had used its patented technology without obtaining a licence or permission.

The company also alleged that Apple was aware, or should have been aware, that products using the technology could fall within the scope of its patents. Taction further claimed that Apple's conduct amounted to deliberate avoidance of the company's patent rights.

The jury did not, however, find that Apple had wilfully infringed the patents.

Apple has said it intends to appeal the verdict and disputes the finding that its technology infringes Taction's patents.

"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 said in a statement.

The case represents one of the largest patent-related financial judgments involving Apple and comes during a period of significant change for the technology company.

In September, John Ternus became Apple's chief executive, succeeding Tim Cook after Cook's 15-year tenure at the company. The leadership transition comes as Apple faces pressure to accelerate the development and rollout of artificial intelligence products compared with other major technology companies.

Apple's shares also came under pressure following the verdict. The stock fell by about 2 percent after trading opened on Monday.

The final financial impact of the judgment could depend on the outcome of Apple's planned appeal and any subsequent court proceedings.