Why Apple Has Been Ordered To Pay $5.7 Billion In Haptic Technology Patent Case

A federal jury in California recently ordered Apple to pay more than $5.7 billion to a small tech firm named Taction Technology, CNBC reported. The court ruled that Apple used Taction's patented technology to power the haptic feedback in its iPhones and Apple Watches without permission. The ruling mentioned that Apple's Taptic Engine, which creates tapping vibrations, infringed two Taction patents.

The case is centred on Apple's "Taptic Engine". This tiny motor inside iPhones and Apple Watches creates gentle vibrations and tactile clicks when users type on the keyboard, flip software switches, or press down on the screen.

San Diego-based Taction Technology, which develops haptic hardware primarily for gaming headsets and headphones, filed the lawsuit back in 2021. They claimed that Apple's vibration systems violated two of its core patents covering advanced tactile sensation features.

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Apple responds to the verdict

Although the jury found Apple liable, it concluded that Apple did not act "willfully".

"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 given to CNBC.

"Apple's Taptic Engine is fundamentally different from Taction's technology, which Taction's own testing of Apple's products confirmed during trial. Apple does not use Taction's technology, and we will appeal."

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On the other hand, Taction's legal team celebrated the decision as a win for smaller innovators. Lance Yang, a lawyer representing Taction, stated that the company was glad the jury recognised and protected its patent rights.

"We're happy the jury found for Taction and vindicated its patent rights," Yang told CNBC. "Taction waited five and a half years for this case to get to trial, so it was a long time coming."

This ruling will not immediately force Apple to transfer $5.7 billion to Taction, because Apple intends to challenge the verdict in higher courts.