Apple Hit with $368 Million Judgment in VPN Patent Lawsuit from VirnetX

virnetx logoBloomberg reports that VirnetX has been awarded a $368.2 million judgment against Apple in a 2010 patent lawsuit over virtual private networking (VPN) connectivity related to Apple's FaceTime video calling feature.

The VirnetX patents cover the use of a domain-name service to set up virtual private networks, through which a website owner can interact with customers in a secure way or an employee can work at home and get access to a company’s electronic files. VirnetX had sought $708 million in damages.

“For years Apple refused to pay fair value for the VirnetX patents,” Doug Cawley, a lawyer with McKool Smith in Dallas who represents VirnetX, said in closing arguments. “Apple says they don’t infringe. But Apple developers testified that they didn’t pay any attention to anyone’s patents when developing their system.”

The technology was developed as part of work conducted by defense company SAIC on behalf of the Central Intelligence Agency, and VirnetX is a holding company created by former SAIC employees. VirnetX has indicated that it plans to seek a halt to continuing use of its technology by Apple, so it is unclear how the two parties will proceed toward a potential resolution that would keep FaceTime intact.

Top Rated Comments

HobeSoundDarryl Avatar
150 months ago
(judgement against Apple) Cue 500+ posts about the patent system being broken, needs reformed, stupid patent system, patent trolls, this shouldn't even be patentable, etc.

(judgement for Apple) Cue 500+ posts about patent system working, "die _______ die!", intellectual property should be protected, serves them right, other companies should innovate rather than copy, etc.
Score: 35 Votes (Like | Disagree)
KnightWRX Avatar
150 months ago
the patent system is broken.

Oh, so when it's Apple that's guilty, the patent is broken... ;)

Software patents are just an abheration.
Score: 28 Votes (Like | Disagree)
JGowan Avatar
150 months ago
What's good for the goose is good for the gander.
Score: 18 Votes (Like | Disagree)
EbookReader Avatar
150 months ago
the patent system is broken.
Score: 14 Votes (Like | Disagree)
brock2621 Avatar
150 months ago
"We invented the Internet connecting 2 devices..."
Score: 13 Votes (Like | Disagree)
nutjob Avatar
150 months ago
What goes around comes around.
Score: 11 Votes (Like | Disagree)

Popular Stories

iOS 18 Siri Integrated Feature

iOS 18 Rumored to Add These 10 New Features to Your iPhone

Wednesday April 24, 2024 2:05 pm PDT by
Apple is set to unveil iOS 18 during its WWDC keynote on June 10, so the software update is a little over six weeks away from being announced. Below, we recap rumored features and changes planned for the iPhone with iOS 18. iOS 18 will reportedly be the "biggest" update in the iPhone's history, with new ChatGPT-inspired generative AI features, a more customizable Home Screen, and much more....
apple id account

Apple ID Accounts Logging Out Users and Requiring Password Reset

Saturday April 27, 2024 12:41 am PDT by
There are widespread reports of Apple users being locked out of their Apple ID overnight for no apparent reason, requiring a password reset before they can log in again. Users say the sudden inexplicable Apple ID sign-out is occurring across multiple devices. When they attempt to sign in again they are locked out of their account and asked to reset their password in order to regain access. ...
macos sonoma feature purple green

Apple's Regular Mac Base RAM Boosts Ended When Tim Cook Took Over

Friday April 26, 2024 6:34 am PDT by
Apple used to regularly increase the base memory of its Macs up until 2011, the same year Tim Cook was appointed CEO, charts posted on Mastodon by David Schaub show. Earlier this year, Schaub generated two charts: One showing the base memory capacities of Apple's all-in-one Macs from 1984 onwards, and a second depicting Apple's consumer laptop base RAM from 1999 onwards. Both charts were...
maxresdefault

The MacRumors Show: Apple's iPad Event Finally Announced!

Friday April 26, 2024 8:31 am PDT by
On this week's episode of The MacRumors Show, we discuss the announcement of Apple's upcoming "Let loose" event, where the company is widely expected to announce new iPad models and accessories. Subscribe to The MacRumors Show YouTube channel for more videos Apple's event invite shows an artistic render of an Apple Pencil, suggesting that iPads will be a focus of the event. Apple CEO Tim...
ipad pro 2022

Apple Event Rumors: iPad Pro With M4 Chip and New Apple Pencil With Haptic Feedback

Sunday April 28, 2024 6:19 am PDT by
In his Power On newsletter today, Bloomberg's Mark Gurman outlined some of the new products he expects Apple to announce at its "Let Loose" event on May 7. First, Gurman now believes there is a "strong possibility" that the upcoming iPad Pro models will be equipped with Apple's next-generation M4 chip, rather than the M3 chip that debuted in the MacBook Pro and iMac six months ago. He said a ...
maxresdefault

Apple Announces 'Let Loose' Event on May 7 Amid Rumors of New iPads

Tuesday April 23, 2024 7:11 am PDT by
Apple has announced it will be holding a special event on Tuesday, May 7 at 7 a.m. Pacific Time (10 a.m. Eastern Time), with a live stream to be available on Apple.com and on YouTube as usual. The event invitation has a tagline of "Let Loose" and shows an artistic render of an Apple Pencil, suggesting that iPads will be a focus of the event. Subscribe to the MacRumors YouTube channel for more ...