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Verdict Upheld in Apple & VirnetX Patent Infringement Case

Apple’s bid to throw out or reduce a patent infringement verdict was denied by a federal judge last week, in a move that could boost the tech giant’s total payout in two separate lawsuits above $1.1 billion.

Apple patentPhoto Credit: Shutterstock

The $502.8 million verdict, in favor of VirnetX Holding Corp, alleges Apple illegitimately used their internet security technology.

At the conclusion of the case in October, jurors found that Apple infringed two VirnetX patents. These patents were specifically related to virtual private networks or VPNs, a technology Apple uses to enable iPhones, iPads and other products to securely connect to the internet.

U.S. District Judge Robert Schroeder, of the Eastern District of Texas, rejected the request for a new trial and several other claims. Those claims include disagreements about the award and royalties payout and key evidence was not presented to the jury. Specifically, Apple claims that jurors should have been told the U.S. Patent and Trademark Office had deemed VirnetX’s claims “unpatentable.”

Apple’s numerical arguments included that VirnetX’s award should not exceed $113.7 million and that royalties for future infringements should be zero. Judge Schroeder clearly disagreed.

Schroeder not only upheld the previous verdict, but also awarded VirnetX interest and royalties of 84 cents per unit for future infringements, mirroring the rate set by the jury.

Last March, Apple was forced to pay VirnetX $454 million after the U.S. Supreme Court refused to hear the iPhone maker’s appeal in an earlier patent case. The two companies have been embroiled in patent litigation for almost a decade.

Apple stated in a Dec. 18th court filing, that the latest award could increase its total payout in both cases to over $1.1 billion.

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Source: https://www.reuters.com/article/idUSKBN29K2DU

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