Burford eyes $1.4bn payday after Apple hit with historic patent verdict

Burford Capital could be in line for a bumper payday after a US jury awarded $5.7 billion to a technology company it backed in a patent battle against Apple.

A federal jury in San Diego on Friday sided with Taction Technology, a local technology company that accused Apple of infringing patents covering vibration technology.

The London-listed litigation funder said on Monday that if the $5.7 billion award is ultimately paid in full, it would be entitled to $1.4 billion.

But Burford cautioned that the eventual payout could be substantially lower. Apple can ask the court to set aside the jury's decision and has already said it will appeal. Burford said large US patent awards rarely survive the post-trial and appeals process intact.

Taction sued Apple in 2021, alleging that its Taptic Engine - which creates the taps and vibrations felt on iPhones and Apple Watches - infringed two of its patents covering vibration technology.

Apple denied infringement and won the case in 2023, before Taction successfully appealed, paving the way for Friday's verdict.

Quinn Emanuel is representing Taction. The disputes powerhouse said the award was the largest patent jury verdict in US history.

Big win after YPF blow

For Burford, the verdict comes after a major setback earlier this year. In March, a US court decision prompted Burford to write down the value of its interest in the long-running litigation over Argentina's takeover of oil company YPF by $2.4 billion.

Burford reported a roughly break-even second quarter in August and said it planned to rein in some large investments and reduce management costs following the YPF setback.

The Apple litigation is one of several major cases in Burford's portfolio. The funder is also backing a recently certified £5 billion UK class action against Google over allegations that the technology company abused its dominance in search advertising.