Key points
- A small audio company wins a record patent verdict
- The case concerns how iPhones and Apple Watches vibrate
- Apple disputes the award and plans to appeal
A federal jury awarded Taction Technology $5.72 billion on Friday after finding that Apple (AAPL) infringed two patents covering vibration technology. The case centers on the Taptic Engine, which makes iPhones and Apple Watches tap and buzz.
Reuters described the award as the largest U.S. patent verdict to date. Apple disputes the decision and plans to appeal.
The jury found infringement of three claims across the two patents but did not find it willful, according to the verdict form reported by AppleInsider. A willfulness finding could have supported increasing the damages to as much as three times the award.
For scale, $5.72 billion is about 5% of Apple's $112 billion net income in fiscal 2025, as reported in its annual report. The verdict arrived after Friday's market close, so Apple's 1.5% gain to $341.07 preceded the decision.
The technology behind the case
Taction, based in San Diego, developed the Kannon headset with a haptic driver in each earcup, allowing listeners to feel the bass. Its patents cover tactile transducers, devices that produce vibrations people can feel.
The lawsuit concerns Patent No. 10,659,885 and Patent No. 10,820,117. Taction argued that Apple used those inventions in the Taptic Engine without a license.
The case nearly ended before reaching a jury. Taction sued in 2021, and U.S. District Judge Todd W. Robinson ruled in Apple's favor in 2023 without a trial. The Federal Circuit vacated that decision in August 2025, finding that the judge had improperly excluded Taction's expert opinions and misinterpreted the patent claims.
The trial began September 14. Seven jurors deliberated for two days before returning their verdict at 1:15 p.m. Pacific time Friday, CNBC reported.
Apple told CNBC that it strongly disagrees with the verdict and called the damages "entirely unsupported by the facts." The company said: "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."
Lance Yang, a partner at Quinn Emanuel and Taction's lead counsel, told CNBC: "We're happy the jury found for Taction and vindicated its patent rights. Taction waited five and a half years for this case to get to trial, so it was a long time coming."
Taction had outside money behind the lawsuit. The litigation funders identified in the case include Gronostaj Investments LLC and Kenosha Investments LP, Bloomberg Law reported. Bloomberg Law described Kenosha as an indirect subsidiary of Burford Capital, a litigation finance firm.
The Taction verdict adds to Apple's other court fights this year, including its trade secrets lawsuit against OpenAI. Apple is also contesting a $634 million verdict that Masimo won over Apple Watch blood-oxygen features.
How Apple can fight the award
Apple can first ask Judge Robinson to throw out or reduce the award in post-trial motions. An appeal would then go to the Federal Circuit, the same court that revived the case.
Large patent verdicts do not always survive appeal. A Texas jury ordered Intel to pay VLSI Technology $2.18 billion in 2021, and the Federal Circuit threw out that award in December 2023.
