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

Bloomberg 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

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101 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)
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101 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)
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101 months ago
What's good for the goose is good for the gander.
Score: 18 Votes (Like | Disagree)
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101 months ago
the patent system is broken.
Score: 14 Votes (Like | Disagree)
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101 months ago
"We invented the Internet connecting 2 devices..."
Score: 13 Votes (Like | Disagree)
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101 months ago
What goes around comes around.
Score: 11 Votes (Like | Disagree)

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