Apple Seeks to Overturn Record $5.7 Billion Patent Verdict

The request, filed in federal court in San Diego, challenges a September jury decision that found Apple infringed two patents covering haptic feedback technology, according to Reuters. The award is believed to be the largest patent infringement verdict in U.S. history.

Apple contends that the jury’s damages calculation was unsupported by adequate evidence and that Taction failed to establish a reliable financial basis for the award.

The technology giant is seeking a ruling that would eliminate the damages and reverse the infringement findings. Alternatively, Apple has requested a new trial addressing infringement, patent validity and compensation.

Dispute Centers on Apple’s Taptic Engine

The litigation concerns Apple’s Taptic Engine, a component that produces physical sensations in response to actions on its devices, including simulated button clicks and other tactile notifications.

Taction, which brought the lawsuit in 2021, accused Apple of using technology protected by patents involving vibration-generating components.

A federal jury in the Southern District of California ruled on Sept. 25 that Apple infringed claims in two Taction patents. The jurors did not find that the infringement was willful, according to Bloomberg Law’s reporting on the verdict.

Apple has disputed the infringement allegations, maintaining that its technology operates differently from the systems described in Taction’s patents.

In its latest challenge, Apple also questioned the technical testing used to establish infringement, arguing that Taction’s expert relied on an inappropriate methodology to evaluate the company’s devices, according to 9to5Mac.

Read more: Apple and Amazon Hit With Revived UK Competition Case

Record Damages Face Judicial Scrutiny

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The extraordinary size of the verdict has drawn attention from patent attorneys and litigation-financing firms, particularly because major patent awards are frequently reduced or overturned during post-trial proceedings and appeals.

Apple’s challenge focuses in part on whether Taction supplied sufficient evidence to support the jury’s damages determination.

According to 9to5Mac’s review of the filing, Apple argued that Taction did not adequately quantify the economic value of its patented technology, leaving jurors without a reliable framework for calculating a reasonable royalty.

The verdict also has financial implications for Burford Capital Ltd., which helped finance the litigation. Burford previously disclosed that it could receive approximately $1.4 billion if the original award were collected in full, according to Bloomberg Law.

The litigation funder has cautioned that substantial patent verdicts often face significant uncertainty during subsequent court proceedings and that any eventual settlement could be considerably smaller.

Next Steps in the Legal Battle

The federal court must now consider Apple’s request to overturn the jury’s findings or order another trial. The September verdict does not necessarily represent the amount Apple will ultimately be required to pay.

The dispute could also proceed to the U.S. Court of Appeals for the Federal Circuit, which handles patent appeals. Apple previously indicated that it intended to pursue appellate review if its post-trial challenges were unsuccessful, according to Bloomberg Law.

The case is Taction Technology Inc. v. Apple Inc., No. 3:21-cv-00812, in the U.S. District Court for the Southern District of California.

Source: Bloomberg Law

Source: Reuters