Apple faces a record-breaking $5.7 billion verdict for alleged patent infringement involving Taction, a San Diego-based audio and gaming peripherals company. The federal jury ruled that Apple's Taptic Engine in iPhone and Apple Watch models infringed on two of Taction's haptic feedback patents. Taction filed the lawsuit in 2021, though it was initially dismissed in 2023 before being revived by the US Court of Appeals for the Federal Circuit.

Apple maintains the infringement was unintentional and stated it will appeal the decision, arguing against the damages. If upheld, this payout would surpass the $3 billion case involving Intel, becoming one of the largest patent infringement awards in US history. This legal battle adds to Apple's growing list of intellectual property disputes, including a separate $634 million verdict from Masimo regarding blood-oxygen tracking features on the Apple Watch, which Apple is also appealing.

The company's history with patent litigation includes previous disputes with Immersion over haptic technology, which eventually settled for an undisclosed amount. Apple continues to navigate complex patent landscapes as it integrates advanced hardware features across its product lineup.