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.

virnetx_logo
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 $302.4 million award was in line with what VirnetX had been demanding.

Neither Apple nor VirnetX have commented on the latest case, although Cupertino will surely exhaust all avenues for appeals before accepting the result. In the meantime, it is facing another court proceeding over whether it willfully infinged the patents, which could lead to higher damages.

Apple is also set to contend with the trial in a second lawsuit filed by VirnetX over newer versions of Apple security features, as well as its iMessage platform.

Top Rated Comments

(View all)
Avatar
53 months ago
How do you seek permission for vague software patents that should never be awarded and for which there is no product to compare to? Software patents need to stop or be 3 years only unless the company has an active product and then they should be maybe 5 years. Software patents are just a dumb idea. Software copyrights are a good idea. That way people cannot steal code.
Score: 39 Votes (Like | Disagree)
Avatar
53 months ago
Ridiculous how high that award is. Something really needs to be done about patent trolling in the United States.
Score: 29 Votes (Like | Disagree)
Avatar
53 months ago
Patent trolls offices, visited

Score: 24 Votes (Like | Disagree)
Avatar
53 months ago
China will become leading country in technology development soon, while everyone in US will be developing....eee...lawyers :)
Score: 18 Votes (Like | Disagree)
Avatar
53 months ago

What is it people have against "patent trolls"? So what if they have no product. Is making the product the hard part or coming up with the idea the hard part. If people think making the product is the hard part, then why are those same people angry when Samsung has a smartphone that looks like an iPhone?
Score: 14 Votes (Like | Disagree)
Avatar
53 months ago
This isn't just some patent troll case, SAIC was a huge part of this and has actual working government level products using the tech.
Score: 12 Votes (Like | Disagree)

Top Stories

iPhone 12 Pro in Graphite and iPhone 12 in Blue Shown Off in Unboxing Videos

Monday October 19, 2020 8:20 am PDT by
While the iPhone 12 Pro does not launch until Friday, we now have an early unboxing video of the device courtesy of Twitter account DuanRui, providing a closer look at the shiny new flat-edge design and sleek Graphite color option. Ben Geskin re-uploaded the unboxing video to YouTube, which we've embedded below: Geskin has also uploaded an unboxing video of the iPhone 12 in Blue: ...

New Photos Offer Better Look at iPhone 12 Color Options

Tuesday October 20, 2020 2:34 am PDT by
As we wait for the iPhone 12 review embargo to lift later today, more pictures are circulating of the devices in real-world lighting conditions, providing a better look at the different colors available. Leaker DuanRui has shared images on Twitter of the iPhone 12 in white, black, blue, green, and (PRODUCT)RED. The black and white colors are similar to the iPhone 11 colors, but the other...

Kuo: iPhone 12 Pro Demand Higher Than Expected

Sunday October 18, 2020 10:39 pm PDT by
TF International Securities analyst Ming-Chi Kuo released a research note this morning detailing what he's seen with the volume of iPhone 12 and iPhone 12 Pro pre-orders in the first weekend of sales. Kuo had previously indicated that Apple's estimated shipment allocations for the new iPhone models placed the iPhone 12 at the top with 40-45% of inventory allocation (up from 15-20%). However, ...

Apple Releases iPadOS and iOS 14.1 With Multiple Bug Fixes Ahead of iPhone 12 Launch

Tuesday October 20, 2020 10:06 am PDT by
Apple today released iOS and iPadOS 14.1, the first major updates to the iOS and iPadOS 14 operating system updates that were released in September. iOS and iPadOS 14.1 come a week after Apple released the golden master versions of the updates to developers. The iOS 14.1 update can be downloaded for free and it is available on all eligible devices over-the-air in the Settings app. To access...

Hands-On With Apple's MagSafe Charger for iPhone 12

Monday October 19, 2020 11:54 am PDT by
Alongside the new iPhone 12 models, Apple introduced a MagSafe charger that attaches to the back of the iPhones using magnets embedded both in the charger and in the iPhone. It allows for speedier charging and paves the way for a portless iPhone in the future. MagSafe chargers are shipping out and are in some Apple retail locations now, and we picked one up to check it out. Subscribe to the ...

Watch: iPhone 12 and iPhone 12 Pro Unboxing Videos and First Impressions

Tuesday October 20, 2020 6:05 am PDT by
Apple's embargo has lifted for iPhone 12 and iPhone 12 Pro reviews. In addition to our detailed review roundups for each device, we've rounded up over a dozen unboxing videos and first impressions below. iPhone 12 in Blue on left and iPhone 12 Pro in Pacific Blue on right via Engadget Key new features of the iPhone 12 and iPhone 12 Pro include a flat-edge design, 5G support, a much faster A14 ...

Some Apple Watch SE Owners Experiencing Issues With Overheating [Updated]

Monday October 19, 2020 11:38 am PDT by
There may be an issue with the new Apple Watch SE, which some users have found is overheating after a few hours of usage. Several Apple Watch SE owners in South Korea have run into problems, as noted in a Reddit post chronicling the complaints. There have been six reports from Apple Watch SE owners in South Korea who have had their Apple Watches get hot and malfunction, with a yellow spot...

Gold Version of iPhone 12 Pro Apparently Has a More Fingerprint Resistant Stainless Steel Frame

Tuesday October 20, 2020 11:56 am PDT by
iPhone 12 Pro reviews hit the web today, and one of the more interesting tidbits came from TechCrunch's Matthew Panzarino, who revealed that the Gold version of the device apparently has a more fingerprint resistant coating applied to the stainless steel frame. From his review:Most of the iPhone 12 Pro finishes still use a physical vapor deposition process for edge coating. But the new gold...

iPhone 12 Pro Max Has Smaller 3,687 mAh Battery According to Regulatory Filing

Tuesday October 20, 2020 8:48 pm PDT by
Apple's new iPhone 12 Pro Max is equipped with a 3,687 mAh battery, which is around 7% less capacity than the 3,969 mAh battery in the iPhone 11 Pro Max, according to a regulatory filing published by TENAA, the Chinese equivalent of the FCC. The regulatory filing, spotted by MacRumors, also lists the iPhone 12 Pro Max with 6GB of RAM as seen in benchmark results last week. Apple has filed ...

Hands-On With Apple's iPhone 12 and 12 Pro MagSafe Cases

Tuesday October 20, 2020 1:33 pm PDT by
Apple's iPhone 12 and 12 Pro are launching this Friday, and ahead of that release date, Apple is shipping out various accessories like the MagSafe charger and MagSafe cases. Yesterday we took a look at the MagSafe charger, and today our MagSafe case came in the mail, so we thought we'd take another look at the charger to see how it works with the case and just how strong the case magnets are. S ...