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insurancebusinessmag.com
A San Diego jury has awarded Taction Technology $5.7 billion in damages, finding Apple infringed on patents related to tactile transducers used in its Taptic Engine. This marks the largest patent verdict in U.S. history. Apple plans to appeal, arguing its technology differs from Taction's. The case, originally filed in 2021, was revived by the Federal Circuit after an earlier dismissal. Litigation funders backing Taction stand to gain a substantial portion of the payout if the verdict is upheld.
The ruling comes amid growing scrutiny of third-party litigation funding, with potential regulatory changes on the horizon. Apple is concurrently dealing with other IP disputes, including a $634 million judgment in July.
Investment implication: If upheld, the $5.7 billion liability would significantly impact Apple's financials, potentially tightening margins. For you, this raises concerns about Apple's ability to manage litigation risks and maintain ecosystem stability, especially as IP disputes become more frequent.