Apple Plans to Appeal $439M 'Final Judgment' in FaceTime Patent Lawsuit With VirnetX

VirnetX today announced that the United States District Court for the Eastern District of Texas has denied all of Apple's motions in a longstanding FaceTime-related patent lawsuit between the two companies.

iPhone 4 FaceTime
The court also granted all of VirnetX's motions in the retrial and increased the royalty rates that Apple owes during the infringement period, resulting in a revised final judgment amount of $439.7 million.

"We are elated with the Court's Final Judgement of $439 million in that not only did it affirm the jury's verdict of $1.20 per infringing iPhone, iPad and Mac Product, but also added for willful infringement, interest and attorney fees. This is the third time a jury has ruled in our favor against Apple," said Kendall Larsen, VirnetX CEO.

VirnetX originally sued Apple in 2010 over allegations that FaceTime's peer-to-peer connection technology infringed upon its patents. VirnetX won its case in 2012, and Apple was hit with a $368.2 million judgment, but the appeals and retrial process has dragged on for over seven years until now.

Of note, the United States District Court for the Eastern District of Texas is a hotbed for patent infringement lawsuits given several favorable outcomes for patent holding entities like VirnetX. Some would even call the company a patent troll, although it does appear to offer at least one product of some kind.

A spokesperson for Apple confirmed that it plans to appeal this final judgment, according to TechCrunch. It noted that the motions can still be appealed even if the original case was already appealed and lost.

Popular Stories

apple wallet drivers license feature iPhone 15 pro teal 1

Apple Says iPhone Driver's Licenses Coming to These 8 U.S. States, But Rollout Remains Slow

Wednesday March 19, 2025 6:55 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly. It has been three and a half years since Apple first announced the...
iOS 19 visionOS UI Elements

iOS 19 to Have Some of the 'Biggest' Design Changes in iPhone's History

Sunday March 16, 2025 10:35 am PDT by
Apple is planning some of the "biggest iOS and macOS redesigns in its history," according to Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman reiterated that iOS 19 will have a visionOS-like design with more transparent interfaces:The new interfaces will adopt the design principles introduced in visionOS, the software for Apple's Vision Pro headset. That includes greater...
iphone 16 pro ghost hand

Next Year's iPhone 18 Pro Already Rumored to Have Five New Features

Tuesday March 18, 2025 1:00 pm PDT by
While the iPhone 18 Pro models are still around a year and a half away from launching, there are already some early rumors about the devices. Below, we recap some key iPhone 18 Pro rumors so far. Under-Screen Face ID In April 2023, display industry analyst Ross Young shared a roadmap showing that iPhone 17 Pro models would feature under-display Face ID. In May 2024, however, Young said ...
iphone 16 pro models 1

Apple's First Foldable iPhone Estimated to Cost Nearly Twice as Much as iPhone 16 Pro Max

Monday March 17, 2025 6:42 am PDT by
In an investor research note today with British bank Barclays, analyst Tim Long said Apple's first foldable iPhone could have a starting price in the $2,300 range in the United States, which would make it by far the most expensive iPhone model ever. If the first foldable iPhone starts at $2,299, that means it would cost nearly twice as much as the iPhone 16 Pro Max, which starts at $1,199. ...
Bent iPhone Air Feature

Apple Canned Larger iPhone 17 Air Model Over Fears of Bendgate 2.0

Monday March 17, 2025 4:07 am PDT by
Apple prototyped a larger ultra-slim iPhone 17 Air with a 6.9-inch display, but ultimately decided not to go ahead with the device because of fears that it could be susceptible to bending, according to a new report. Bloomberg reporter Mark Gurman, writing in his latest Power On newsletter: When it first started work on the phone, it prototyped a device with a 6.9-inch screen — matching...
iphone 16 pro models 1

All Four iPhone 17 Models Rumored to Feature Upgraded 24-Megapixel Front Camera and More

Monday March 17, 2025 7:50 pm PDT by
All four iPhone 17 models launching later this year will feature an upgraded 24-megapixel front-facing camera, according to analyst Jeff Pu. In a research note today with investment firm GF Securities, Pu shared a chart in which he reiterated that the iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max will each be equipped with a 24-megapixel front camera. By comparison, all four ...
General iOS Mail Feature

iOS 18.3.2 Broke iCloud Mail Delivery

Monday March 17, 2025 3:31 pm PDT by
The iOS 18.3.2 update that Apple released last week appears to have broken iCloud Mail for some users. There are multiple complaints on Reddit and the MacRumors forums from users who say that iCloud Mail is not able to push new iCloud emails to their iPhones after the iOS 18.3.2 update. Affected users say that despite having the correct settings enabled, new iCloud emails are not showing up...
iphone 17 pro asherdipps

iPhone 17 Pro Max Rumors Allegedly Refer to 'iPhone 17 Ultra' Model

Friday March 14, 2025 7:56 am PDT by
If you've been following iPhone rumors over the last few years, you may remember reading reports that Apple flirted with the idea of introducing a super high-end "Ultra" model that would either replace its Pro Max device or sit above it in Apple's smartphone hirearchy. These reports appeared in the pre-launch iPhone 15 and iPhone 16 rumor cycles, but ultimately came to nothing. Now though, the...

Top Rated Comments

gaximus Avatar
97 months ago
Whats the point of a "Final Judgment" if you can appeal it?
Score: 19 Votes (Like | Disagree)
WatchFromAfar Avatar
97 months ago
So iphone 8 sales were lacklustre, the 10th anniversary Event at Steve Jobs's theatre went down like a damp squid, and only 46,500 iphone Xs ready at launch day.
and they've 'lost' Facetime case.
Nice.
It's "a damp squib" meaning an explosive that has gotten damp so it can't go off. Still you made me laugh :)
Score: 12 Votes (Like | Disagree)
thisisnotmyname Avatar
97 months ago
smh just pay it the company has $200 billion in the bank
I'd like $100 from you. Just pay it to me, you have the money in the bank. If you'd like I can file a small claim and receive a default judgement so we can continue this analogy.
Score: 11 Votes (Like | Disagree)
Sasparilla Avatar
97 months ago
I remember these guys:

http://anewdomain.net/who-is-virnetx-apple-must-pay-300m-plus-breaking/

Their founding owners were directly related to the U.S. national security establishment - and forced Apple to abandon encrypted phone to phone connections (no middle server)...Apple had to go to server pass through at the time. VirnetX had a patent on the direct client to client technology and wouldn't license it to Apple - not because it wasn't enough money, just wouldn't license it. Not sure where things stand now. But they weren't the only faux patent company the NSA etc. directly controlled and probably still control....
Score: 9 Votes (Like | Disagree)
kdarling Avatar
97 months ago
Apple has a product, so it’s hardly patent trolling.
Actually, Apple has sued over patent claims it doesn't use itself.

Also, as previously noted, Apple was part of a consortium that created a notorious patent troll called Rockstar.

In any case, VirnetX is not what most people call a troll, since they invented what they license, and do have app and library products using their patents.

Also, the patent wasn’t and isn’t on a “rectangle with round corners”, that’s just **** someone made up on the internet.
On the contrary, Apple DID manage to get a design patent on a rounded rectangle. Here it is. (Dashed lines don't count.)



Apple awarded design patent for actual rounded rectangle - Ars Technica ('https://arstechnica.com/gadgets/2012/11/apple-awarded-design-patent-for-actual-rounded-rectangle/')

Apple did not try to sue Samsung using the more detailed actual iPad design patent. It wouldn't have worked, as none of Samsung's tablets had a round Home button or the same exact shape. So instead, Apple tried to use the above generic rounded rectangle patent.

The attempt failed. Along with courts all over the world, even the first set of California jurors decided that Samsung's tablets did not infringe it.

Attachment Image
Score: 6 Votes (Like | Disagree)
kdarling Avatar
97 months ago
The whole patent system needs to be overhauled. I'm not defending Apple if they did something wrong then they should pay up but small companies patent trolling big companies is not the way to run a business.
Normally a troll is defined as a company that buys up patents and then goes looking for offenders.

(Note: Apple did that themselves by proxy, when the consortium they belonged to bought Nortel patents and then created a patent holding company that did nothing but reverse engineer software to find infringements.)

VirnetX is different. Its officers are mostly the guys who actually invented what they license. Basically, they're living the American inventor's dream of coming up with something that lots of people will want to use and pay for. Nothing wrong with that whatsoever.

Worse, Apple's own internal documents showed that they knew they were infringing VirnetX patents, but went ahead anyway.

You are correct, the United States District Court for the Eastern District of Texas is notoriously known as the home of Patent Trolls..
Many plaintiffs like East Texas and Delaware courts because they are quick, have technical experience, and especially because they favor patent holders.

In a similar way, Apple prefers northern California courts which seem to favor home state companies.

Likewise, Motorola used to favor filing in their home state of Illinois.
Score: 6 Votes (Like | Disagree)