Apple ordered to pay $5.7bn in patent infringement case

A federal jury in California has ordered Apple to pay more than $5.7bn to Taction Technology after finding the iPhone maker infringed on two of the San Diego company's patents related to haptic feedback technology, according to Al Jazeera.

Haptic feedback refers to the small vibrations phone users feel when receiving notifications or tapping buttons on their screens. Taction had argued that Apple's Taptic Engine relied on its patented methods without permission.

The jury, sitting in the Southern District of California, determined that Apple's conduct did not amount to wilful infringement, a distinction that can affect the size of damages awarded in patent disputes.

Lance Yang, an attorney representing Taction, said following the ruling that the company was pleased the jury sided with it and upheld its patent rights, according to Al Jazeera.

Apple pushed back on the outcome, saying its Taptic Engine operates on fundamentally different technology than Taction's, adding that testing conducted by Taction itself during the trial supported this position. The company confirmed it intends to appeal the decision.

The case dates back to 2021, when Taction first sued Apple over the alleged patent violations. In its original complaint, spanning 31 pages, Taction accused Apple of profiting from its innovations by selling products that used its patented technology without a license or authorization. The filing further alleged that Apple was aware of a strong likelihood that its devices infringed on Taction's patents but chose to ignore the issue rather than address it.

A federal judge sided with Apple in 2023, ruling that no infringement had occurred. That decision was overturned last year when an appeals court reinstated the lawsuit, paving the way for the trial that concluded with Friday's verdict.

The billion-dollar judgment lands at a sensitive time for Apple, which recently underwent a change in leadership. John Ternus stepped into the chief executive role in September, taking over from Tim Cook, who had headed the company for 15 years. The transition comes as Apple faces pressure to catch up with competitors that have moved more quickly to introduce artificial intelligence features into their products.

Following news of the verdict, Apple's stock dropped roughly two percent when markets opened on Monday.

The size of the award and the finding of infringement mark a significant setback for Apple, even though the jury's rejection of wilful infringement claims may limit the broader legal and financial fallout. With an appeal now planned, the dispute between the two companies is likely to continue for some time before any final resolution is reached.