Apple’s Taptic Engine patent defeat sends litigation funder’s shares up 9%

Burford Capital's shares experienced a substantial increase of over 9% following Apple's $5.7 billion verdict on Taptic Engine patent infringement. The US jury ruled that Apple's Taptic Engine, introduced in September 2014 with the first Apple Watch, infringes on two patents held by California-based company Taction Technology. The technology has since been incorporated into various Apple products, including the iPhone, where it provides haptic feedback for notifications and interactions.

Taction filed its patent infringement lawsuit in 2021, accusing Apple of directly and indirectly violating two of its patents through the Taptic Engine used in a wide range of iPhone and Apple Watch models. After the verdict was announced, Taction stated that the jury had "vindicated its patent rights," while Apple expressed disagreement with the decision and planned to appeal.

Burford Capital, a litigation funder, disclosed that it has a financial stake in the case and could potentially receive $1.4 billion if the $5.7 billion verdict is paid in full. The shares of Burford Capital surged by 9.41% following the revelation, bringing the company's market capitalization to £659.9 million, or approximately $875 million.

The source notes that Taction received funding from Kenosha Investments LP and Gronostaj Investments LLC, both of which are connected to Burford as an indirect subsidiary financing lawsuits in exchange for a share of any eventual recovery.