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Apple’s $5.7B Haptic Patent Suit Verdict: A Costly Blow for Tech Giant

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Apple Ordered to Pay $5.7B in Haptic Patent Suit

Apple has been ordered to pay a substantial $5.7 billion in damages to a San Diego-based company following a jury’s decision that the Taptic Engine utilized in Apple Watch and iPhone violated two of its patents.

The plaintiff, Taction Technology, specializes in creating technology for high-end headphones like the Corsair HS60 Haptic stereo gaming headset, employing the “Taction Transporter” to deliver immersive bass vibrations.

During the development process, Taction secured two patents, U.S. Patent No. 10,659,885 and 10,820,117, detailing systems for generating audio-frequency vibrations through electromagnetically actuated motion.

Interestingly, Apple had been working on its own Taptic Engine before the establishment of Taction Technology in 2017 by Dr. Silmon James Biggs, the inventor of the technology with a notable scholarly background.

Despite Taction’s relatively recent inception, it is not merely a patent troll, as evidenced by the jury’s deliberation and decision regarding Apple’s infringement of their patents.

The jury did not find Apple’s infringement to be willful, suggesting that the similarity between Apple’s redesigned Taptic Engine and Taction’s technology may have been unintentional.

It is a lesser-known aspect of patent law that infringement can occur accidentally, highlighting the possibility of two separate engineering teams arriving at similar technological solutions.

While Taction alleged that Apple willfully infringed their patents by reverse-engineering technology from their previous Kannon headsets, Apple maintains its stance and intends to appeal the ruling.

Taction’s lead counsel, Lance Yang, expressed satisfaction with the jury’s decision, emphasizing the vindication of their patent rights after a prolonged legal battle.

However, Apple contests the verdict, arguing that their Taptic Engine differs significantly from Taction’s technology, as corroborated by Taction’s own product testing during the trial.

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The $5.7 billion verdict, potentially Apple’s largest payment obligation to date, may undergo revisions or settlements as the legal process progresses, with the possibility of a reduced amount or an out-of-court agreement.

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While we appreciate the jury’s deliberation, we strongly disagree with the verdict and damages awarded, which lack factual support. Apple’s Taptic Engine is distinctly different from Taction’s technology, a fact confirmed by Taction’s own evaluation of Apple’s products during the trial. Apple does not utilize Taction’s technology, and we intend to file an appeal.

Apple, in a statement to CNBC

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