A recent massive patent loss for Apple is causing waves on the stock market. A jury ordered the tech giant to pay $5.7 billion to Taction Technology after ruling that the Taptic Engine inside devices like the Apple Watch infringes on existing patents. Following the court decision, shares in Burford Capital, the legal finance company that funded the lawsuit against Apple, surged more than 9 percent on Monday.
Burford Capital stands to earn over a billion dollars
In a statement released to investors, Burford explained how much money it could potentially make from the jury award. If Apple pays the full $5.7 billion penalty, Burford will receive $1.4 billion. The firm plans to split that payout roughly in half between its own balance sheet and its various investment funds.
However, the company warned its shareholders that seeing the full amount is highly unlikely. Legal matters of this size usually settle for far less than the initial jury verdict. The final payout will also depend heavily on the original financing agreement, taxes, and extra legal fees tied to the iPhone maker.
Don’t miss the best of The Mac Observer
Set us as a preferred source and our Apple reporting ranks higher in your Google Search results and Discover feed — one tap, no account changes.
The legal battle enters a complicated post-trial process
Apple is not giving up easily and has started fighting back against the massive penalty. The technology company filed a formal request asking the trial court to set aside the jury verdict. The case still faces major hurdles before any money actually changes hands.
Here is what happens next in the legal process:
- The trial court will review the request to determine if the verdict should stand.
- The case will likely move to the appeals court that handles patent issues.
- Judges will closely review the damages award and decide on potential reductions.
- Both parties might negotiate a private settlement to avoid ongoing court fights.
The whole process could take years to resolve. Burford clarified that the jury decision does not mean the firm has cash in hand just yet. As it stands, the financial outcome for everyone involved remains uncertain until a final resolution is reached.
Discussion