Apple Hit With $2.8 Billion Patent Lawsuit Over VoIP Technology

iMessage-duoVoIP-Pal announced today that it has filed a lawsuit against Apple in a U.S. District Court in Las Vegas, Nevada, seeking over $2.8 billion in damages for alleged infringement of its patented internet communication technologies.

The Bellevue-based company calculated its $2,836,710,031 figure using a 1.25-percent royalty rate based on an apportionment of Apple's estimated historical profit from iPhone (55-percent), iPad (35-percent), and Mac (10-percent).

VoIP-Pal (VPLM) has over a dozen issued or pending patents, primarily related to VoIP technologies, a few of which it accuses Apple of infringing upon with services like FaceTime and iMessage on iPhone, iPad, and Mac.

Apple employs VPLM’s innovative technology and products, features, and designs, and has widely distributed infringing products that have undermined VPLM’s marketing efforts. Instead of pursuing independent product development, Apple employed VPLM’s innovative caller attribute classification and routing product design, in violation of VPLM’s valuable intellectual property rights.

The court filing cites multiple ways that Apple is allegedly infringing upon the patents, including the following iMessage claim:

In particular, devices running the iMessage application initiate a communication between a caller and a callee. The callee may be an Apple subscriber or a non-subscriber. In the case that the callee is an Apple subscriber, the communication is sent using iMessage. On the other hand, if the user is not an Apple subscriber or if iMessage is not available, the communication is sent using SMS/MMS. Apple’s messaging system directly and/or indirectly practices certain claims of the ‘815 patent in order to determine the classification of a user, and, subsequently, how the call should be routed.

The lawsuit was originally initiated on February 9, but VoIP-Pal delayed pursuing legal action until Monday as the company says it remains engaged in discussions with Apple outside the courtroom regarding an amicable resolution. The company appears to be open to a sale or licensing of its patent portfolio.

"We are confident the current good will on both sides will result in a favorable outcome for all parties involved," said Emil Malak, CEO of VoIP-Pal.

VoIP-Pal, which acquired network operator Digifonica in 2013, describes itself as "a technical leader in the broadband VoIP market." The company does not currently generate income, but insists it is "absolutely not" a patent troll, noting that Digifonica began designing its system back in 2004.

We designed, built and tested super-nodes and nodes in Canada, England, and Norway, spending more than $17 million on development and execution in the process. At one time, we had more than twenty (20) engineers working on the software design and implementation. […]

Due to the Great Recession in the mid 2000’s, Digifonica was unable to continue supporting the platform, while it was continuing its significant investment in protecting the intellectual property it had developed. […]

The infringing companies are making billions of dollars using technology that were conceived, designed, built, tested and patented by Digifonica.

VoIP-Pal has filed similar lawsuits against AT&T and Verizon in Las Vegas court.

Popular Stories

iphone 16 display

iPhone 17's Scratch Resistant Anti-Reflective Display Coating Canceled

Monday April 28, 2025 12:48 pm PDT by
Apple may have canceled the super scratch resistant anti-reflective display coating that it planned to use for the iPhone 17 Pro models, according to a source with reliable information that spoke to MacRumors. Last spring, Weibo leaker Instant Digital suggested Apple was working on a new anti-reflective display layer that was more scratch resistant than the Ceramic Shield. We haven't heard...
iPhone 17 Air Pastel Feature

iPhone 17 Reaches Key Milestone Ahead of Mass Production

Monday April 28, 2025 8:44 am PDT by
Apple has completed Engineering Validation Testing (EVT) for at least one iPhone 17 model, according to a paywalled preview of an upcoming DigiTimes report. iPhone 17 Air mockup based on rumored design The EVT stage involves Apple testing iPhone 17 prototypes to ensure the hardware works as expected. There are still DVT (Design Validation Test) and PVT (Production Validation Test) stages to...
iphone 17 air iphone 16 pro

iPhone 17 Air USB-C Port May Have This Unusual Design Quirk

Wednesday April 30, 2025 3:59 am PDT by
Apple is preparing to launch a dramatically thinner iPhone this September, and if recent leaks are anything to go by, the so-called iPhone 17 Air could boast one of the most radical design shifts in recent years. iPhone 17 Air dummy model alongside iPhone 16 Pro (credit: AppleTrack) At just 5.5mm thick (excluding a slightly raised camera bump), the 6.6-inch iPhone 17 Air is expected to become ...
Beyond iPhone 13 Better Blue

20th Anniversary iPhone Likely to Be Made in China Due to 'Extraordinarily Complex' Design

Monday April 28, 2025 4:29 am PDT by
Apple will likely manufacture its 20th anniversary iPhone models in China, despite broader efforts to shift production to India, according to Bloomberg's Mark Gurman. In 2027, Apple is planning a "major shake-up" for the iPhone lineup to mark two decades since the original model launched. Gurman's previous reporting indicates the company will introduce a foldable iPhone alongside a "bold"...
apple watch ultra yellow

What's Next for the Apple Watch Ultra 3 and Apple Watch SE 3

Friday April 25, 2025 2:44 pm PDT by
This week marks the 10th anniversary of the Apple Watch, which launched on April 24, 2015. Yesterday, we recapped features rumored for the Apple Watch Series 11, but since 2015, the Apple Watch has also branched out into the Apple Watch Ultra and the Apple Watch SE, so we thought we'd take a look at what's next for those product lines, too. 2025 Apple Watch Ultra 3 Apple didn't update the...
AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Tuesday April 29, 2025 1:30 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 13 New Features

Wednesday April 23, 2025 8:31 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
iPhone 17 Pro on Desk Feature

All iPhone 17 Models Again Rumored to Feature 12GB of RAM

Tuesday April 29, 2025 3:36 am PDT by
All upcoming iPhone 17 models will come equipped with 12GB of RAM to support Apple Intelligence, according to the Weibo-based leaker Digital Chat Station. The claim from the Chinese leaker, who has sources within Apple's supply chain, comes a few days after industry analyst Ming-Chi Kuo said that the iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max will all be equipped with 12GB of RAM. ...

Top Rated Comments

Patriot24 Avatar
117 months ago
A good practice litigation for Apple's Junior lawyers division
I had conceived, designed, and tested a variation of that joke in another thread a few years ago. Nobody laughed or liked the post, but I'm going to go ahead and sue you for joke infringement.

I'd be happy to settle. Just send me one of those new MacBooks and we'll call this thing even.
Score: 49 Votes (Like | Disagree)
Steve121178 Avatar
117 months ago
The entire patent system needs to be reviewed. The things some companies have been awarded patents for is ridiculous.
Score: 45 Votes (Like | Disagree)
sputnikv Avatar
117 months ago
they say they're not, but they most definately sound like patent trolls
Score: 43 Votes (Like | Disagree)
marmiteturkey Avatar
117 months ago




VoIP-Pal, which acquired network operator Digifonica in 2013, describes itself as "a technical leader in the broadband VoIP market." The company does not currently generate income, but insists it is "absolutely not" a patent troll ('http://media.wix.com/ugd/768c4e_c10cb778efe14a5091ad537ee9360f92.pdf'), noting that Digifonica began designing its system back in 2004.VoIP-Pal has filed similar lawsuits against AT&T and Verizon in Las Vegas court.

This is pretty much the textbook definition of a patent troll - company acquires other company for patents, does not make a product, and then starts suing others for patent infringement.
Score: 32 Votes (Like | Disagree)
Shanesan Avatar
117 months ago
Patenting a way for a computer to detect whether a device is registered with a central server or not?

Well blow me down, what a billion dollar idea.
Score: 29 Votes (Like | Disagree)
mistasopz Avatar
117 months ago
Patenting a way for a computer to detect whether a device is registered with a central server or not?

Well blow me down, what a billion dollar idea.
Not much better than Apple patenting slide to unlock, page turning, and pinch to zoom...
Score: 20 Votes (Like | Disagree)