Taction seeks royalties on future Apple sales after $5.7B patent verdict
Following a massive infringement ruling, Taction Technology demands ongoing payments on iPhone and Apple Watch sales through 2035.
Key points
- Taction filed a motion seeking supplemental damages and ongoing royalties on future device sales.
- The request covers sales from April 2026 through 2035, including the iPhone 18 and Apple Watch Series 12.
- Apple previously argued for similar royalty rules in its own litigation against Samsung.
Taction Technology has filed a legal motion demanding ongoing royalties from Apple on future iPhone and Apple Watch sales. This request follows a recent US jury verdict that awarded Taction $5.7 billion for patent infringement involving Apple’s Taptic Engine technology. The motion seeks to extend financial penalties through the year 2035.
According to the filing, Taction is seeking additional damages, prejudgment interest dating back to April 2021, and ongoing royalty payments. The company argues that the original jury award only accounted for Apple’s sales through March 2026. Taction claims it is owed compensation for another six months of sales immediately following that cutoff period.
Legal Strategy and Historical Precedent
Taction is leveraging arguments Apple itself made in previous patent disputes to support its current claim. In litigation against Samsung, Apple argued that royalties should apply to newer models using essentially the same technology as infringing products. Taction is now applying this same legal principle to demand royalties on Apple’s latest devices.
The technology firm contends that recent products are not significantly different from the infringing items identified by the jury. Specifically, Taction cites the iPhone 18 Pro, iPhone 18 Pro Max, Apple Watch Series 12, and Apple Watch Ultra 4. It asserts these devices are "not more than colorably different" from the products found to infringe Taction’s patents.
Proposed Payment Structure
Taction is asking the court to compel Apple to provide quarterly reports on its US sales figures. Under the proposed structure, royalty payments would be due within 30 days of the end of each quarter. This would create a long-term financial obligation for Apple extending through 2035.
The motion also requests prejudgment interest at a rate of 7% annually, citing California law. This interest would accrue from April 2021 until the final judgment is paid. Taction aims to secure a comprehensive financial remedy that covers both past losses and future sales of similar technology.
Apple has strongly disputed the original $5.7 billion verdict. The tech giant argued that its Taptic Engine technology is fundamentally different from Taction’s patents. Apple asked the court to overturn the verdict or order a new trial, claiming Taction failed to provide evidence supporting the massive award.
What should you do?
Security and technology professionals should monitor this case for potential impacts on supply chain costs and device availability. The outcome could influence how manufacturers approach patent licensing and component sourcing in the future.
What to do and how to stay safe: Apple
- Monitor legal filings for updates on royalty rates that may affect device pricing or availability.
- Review internal procurement strategies to account for potential cost increases in consumer electronics.
- Assess supply chain resilience in case manufacturing shifts occur due to ongoing litigation.
- Watch for regulatory changes in patent enforcement that might impact industry-wide licensing practices.
Step-by-step guide: Mobile Device Security: How to Protect Data Beyond Passwords
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
How much did the jury award Taction initially?
The jury awarded Taction $5.7 billion in damages for patent infringement.
Which devices are included in Taction's royalty request?
Taction seeks royalties on the iPhone 18 Pro, iPhone 18 Pro Max, Apple Watch Series 12, and Apple Watch Ultra 4.
Why is Taction seeking ongoing royalties?
Taction argues that the original award only covered sales through March 2026 and seeks compensation for future sales of similar devices.
