'VirnetX' Articles

Apple Ordered to Pay $302 Million in Damages to VirnetX in Patent Retrial

Apple has been ordered to pay more than $302 million in damages for using VirnetX Holding Corp's patented internet security technology in its FaceTime platform without permission. According to a Reuters report filed late on Friday, the verdict was handed down by a federal jury in Texas that has a reputation for awarding favorable verdicts to plaintiffs in cases involving patent infringement. The U.S. district judge presiding over the case, Robert Schroeder, previously threw out VirnetX's $625.6 million win over Apple from a previous trial because he said jurors in that case may have been confused. The case with Nevada-based patent licensor VirnetX originally began in 2010, with a jury eventually awarding the company $368 million in 2012, but that decision was thrown out in 2014 after the court decided there were problems with how the trial judge had instructed jurors on calculating damages. VirnetX continued to pursue Apple in relation to patents it believes the company infringed upon. The previous two suits were combined by the licensor's lawyers, and in February, a jury returned with an even bigger verdict, $625.6 million – one of the highest ever in a U.S. patent case. However, Schroeder later voided the result, saying that the repeated references to the earlier case could have confused jurors and were unfair to Apple. In the latest trial, reports Reuters, jurors were asked to determine damages on two VirnetX patents that Apple had already been found to infringe, and to determine both infringement and damages on another two patents. The final

Judge Throws Out $625 Million VirnetX Verdict Against Apple, Sets Two Separate Retrials

Apple will no longer have to pay $625.6 million to VirnetX, which claimed the Cupertino company was infringing upon four Internet security-related patents. The decision came last Friday afternoon from U.S. District Judge Robert Schroeder in Tyler, Texas, claiming that it was "unfair" on Apple's part that two VirnetX lawsuits were aimed at the company in one trial (via Reuters). The case with VirnetX began originally in 2010, with a jury eventually awarding the company $368 million in 2012, but that decision was thrown out in 2014 after the court found the verdict was "'tainted' by erroneous jury instructions in the case." VirnetX remained adamant and kept going after Apple, now amounting to the four total patents it believes Apple infringed upon, related to services like FaceTime and Messages. In the new ruling, Judge Shroeder claimed that jurors in the current case may have been unknowingly swayed and influenced by the events of the previous lawsuit, ultimately leading to an "unfair trial." As such, he has ordered that each case face a separate retrial, the first beginning next month on September 26. VirnetX CEO Kendall Larsen mentioned the company's disappointment at Shroeder's decision, but is preparing for the upcoming retrials all the same. "We are disappointed," VirnetX Chief Executive Kendall Larsen said in a statement on Monday. "We are reviewing all our options and will follow the court's direction as we start preparing for these retrials." In May, following its win in February, VirnetX continued to ask for more money from Apple, along with an injunction

VirnetX Asks for More Money From Apple, Calls on Court to Shut Down FaceTime and iMessage

VirnetX, currently embroiled in a patent dispute with Apple over FaceTime and iMessage, today asked the judge presiding over the case for additional damages and an injunction to block Apple's popular messaging services. According to Law360, VirnetX argues that an injunction is appropriate because Apple's infringement on VirnetX's patents, which relate to virtual private networking (VPN) protocols, has caused irreparable harm to the company. The Nevada-based patent holding company also called Apple the "poster child" for unreasonable litigation tactics and asked the court to increase its damages award by at least $190 million. At a post-trial hearing Wednesday, Texas technology company VirnetX argued that although an injunction blocking Apple's popular video chatting and messaging features, along with a virtual private network on demand feature, may seem like a harsh remedy, it is necessary because of the irreparable harm Apple's infringement caused the company.Apple is currently appealing a February ruling that awarded VirnetX $625 million in damages, and VirnetX likely wants an injunction put in place to speed along the appeal process and force Apple into paying royalties. Apple has filed for a mistrial on the basis that VirnetX "blatantly misrepresented" the testimony of Apple's witnesses and used "arguments outside the evidence." If an injunction is granted, Apple will be forced to shut down key features in Messages and FaceTime or find a workaround to avoid using functionality patented by

Apple Ordered to Pay $625 Million in VirnetX Patent Dispute

Apple was today found guilty of willfully infringing on four patents in an ongoing dispute with VirnetX and has been ordered to pay $625 million in damages, reports CNBC. The patents in question relate to virtual private networking (VPN) protocols and in today's ruling, the jury decided that Apple's FaceTime and iMessages service, along with the iOS devices that support those services, infringe on VirnetX's intellectual property. The patent dispute between Apple and VirnetX dates back to 2010, with a jury initially awarding VirnetX $368 million in 2012 after Apple was found guilty of infringing on VirnetX patents. That decision was thrown out in September of 2014 after the damages were found to have been incorrectly calculated, but a damages retrial that started last week led to the decision handed down this afternoon. VirnetX originally requested $532 million in damages, an amount that grew to $625 million taking into account the willful infringement ruling. Ahead of the jury's decision, CNBC says Apple filed a request asking U.S District Judge Robert Schroeder to declare a mistrial, accusing VirnetX of misleading and confusing the jury during its closing arguments. Schroeder has not yet made a ruling on the request.

VirnetX Asking For $532 Million From Apple in Patent Retrial

VirnetX Holding Corporation is asking for $532 million from Apple for using patented technology for communication services like FaceTime, iMessage and more, the firm told a federal jury today, according to Bloomberg. “Apple hasn’t played fair. They have taken Virnetx’s intellectual property without permission,” VirnetX lawyer Brad Caldwell of Caldwell Cassady told the jury in Tyler, Texas.Greg Arovas, Apple's lawyer, said that Apple believes in "fairness and protecting intellectual property," noting that VirnetX "keeps moving the boundary" and asking for "more and more and more" money. In 2012, the firm was awarded $368 million in a jury trial. However, the decision was thrown out in 2014 as the verdict was influenced by the instructions given to the jury during the trial. The patent suit can be traced back to 2010 over a pair of patents related to virtual private networking (VPN) connectivity. This retrial, which will last through next week, will largely focus on whether any VirnetX patents are infringed in either FaceTime or iMessage. Apple was already found to be infringing the patents with its VPN On Demand service. Apple cannot make the same arguments they made in the first trial, however. VirnetX makes a majority of its revenue on patent licensing. Arovas said that, on a per-unit basis, VirnetX's $200 million settlement with Microsoft over similar violations is less than a tenth of what its currently seeking against Apple.