Apple Wins Appeals Battle in Ongoing Patent Infringement War With VirnetX, Could Save $502.8 Million

Apple has been embroiled in a patent dispute with VirnetX for well over a decade, and the company today won an appeals verdict that could ultimately save it from having to pay VirnetX $502.8 million in patent infringement fees.

virnetx apple
The U.S. Court of Appeals for the Federal Circuit on Thursday confirmed a ruling by the U.S. Patent and Trademark Office invalidating a pair of patents that VirnetX used in its patent infringement lawsuit against Apple, according to Reuters.

Apple in 2020 was ordered to pay VirnetX $503 million for infringing on VPN patents owned by VirnetX with the iPhone's VPN on demand feature. The two patents that have been invalidated were involved in that lawsuit, and now Apple might get the entire judgment vacated.

Apple appealed the $502.8 million award verdict after it was rendered, with both Apple and VirnetX presenting arguments in the appeal back in September. VirnetX attorney Jeff Lamken said at the time that if the court ultimately sided with the USPTO and invalidated the patents in the patent validity case, VirnetX could "have a big problem." He said that he did not think VirnetX would have an "enforceable judgment" in that situation, so this is potentially a major win for Apple.

With the patents now invalidated, VirnetX and Apple will again meet in court over the initial appeals case that Apple filed to determine whether Apple will need to pay up, and it's looking like the $502.8 million verdict will be thrown out.

Regardless of how this case plays out, Apple was forced to pay VirnetX $440 million for violating VirnetX's communications security patents with the FaceTime and iMessage features.

VirnetX is largely viewed a patent holding company or "patent troll" that does not offer actual products or services. It generates revenue by litigating technology companies that infringe on its patents, though it does also market its "War Room" software for authenticated meetings.

Popular Stories

iOS 18 CarPlay Feature

iOS 18 Adds These 5 New Features to CarPlay

Thursday June 13, 2024 7:44 am PDT by
Apple did not mention CarPlay during its WWDC keynote this week, but iOS 18 includes a handful of new features for the in-car software. Overall, there is not a whole lot new for CarPlay on iOS 18, with changes seemingly limited to the Messages and Settings apps so far. Below, we recap everything new for CarPlay on iOS 18. New for CarPlay on iOS 18 1. Contact Photos in Messages App...
ios 18 button bulge

iOS 18 Adds Pop-Out Bezel Animation When Pressing iPhone Buttons

Tuesday June 11, 2024 10:40 am PDT by
iOS 18 includes a small but interesting change for the buttons on the iPhone, adding more of a visual element when changing volume, activating the Action button, or locking the screen. When you press an iPhone button in iOS 18, the display bezel bulges outward slightly. This feature is available for the volume buttons, Action button and the power button, and it will also likely be used for...
iOS 18 Mock iPhone 16 Feature Gray

Revealed: iOS 18 Works With These iPhone Models

Monday June 10, 2024 3:57 am PDT by
iOS 18 will be compatible with the same iPhone models as iOS 17, according to a post on X today from a private account with a proven track record of sharing build numbers for upcoming iOS updates. iOS 18 will be compatible with the iPhone XR, and hence also the iPhone XS and iPhone XS Max models with the same A12 Bionic chip, but older iPhone models will miss out. Here is the full...
maxresdefault

First Look at Messages via Satellite in iOS 18

Thursday June 13, 2024 11:29 am PDT by
Apple has been gradually expanding its suite of satellite connectivity features for iPhone, and iOS 18 brings a significant new one in the form of Messages via satellite. The feature allows users to send and receive iMessages and SMS texts, including emoji and Tapbacks, while out of range of cellular and Wi-Fi networks. CNET met up with Apple's senior director of platform product marketing,...
iOS 18 Siri Integrated Feature

Massive iPhone Upgrade Coming This Week But These Devices Will Miss Out

Sunday June 9, 2024 1:25 pm PDT by
Apple is planning a major AI overhaul in iOS 18, with a feature set it is referring to as "Apple Intelligence." However, these new features will not work on older iPhones, even if they do appear on the new operating system's device compatibility list. Apple's initial AI roadmap for iOS 18 is said to come in two parts: Basic AI features that will be processed on-device, and more advanced...
Generic iOS 18 Feature Real Mock

Your iPhone 15 Can Show the Time When It's Out of Battery in iOS 18

Wednesday June 12, 2024 2:57 pm PDT by
The iPhone has had a Power Reserve function that holds back a small amount of battery life to allow features like Find My and NFC unlocking to work even when your device has died, and in iOS 18, Apple seems to be improving the feature further for the iPhone 15 models. As demonstrated on Reddit, when the battery on an iPhone running iOS 18 is exhausted, the phone can continue to show the time ...

Top Rated Comments

ct2k7 Avatar
16 months ago
VirtnetX stopped Apple from making FaceTime an open standard. I won’t forget.
Score: 29 Votes (Like | Disagree)
CWallace Avatar
16 months ago
XeroxPARC stole the mouse from Stanford and Xerox both invested in Apple at the time (20%) which allowed access to PARC and one of the stated reasons for that investment was the hope Apple could commercialize PARC technology.

And Apple was insured by Xerox, resulting in if PARC had sued Apple and won, Xerox would have paid their own award.

So PARC influenced the Macintosh, but it was certainly not direct IP infringement as it did not use PARC's code as the foundation and PARC might not even have patented any of it. The Macintosh GUI also had many features that PARC's GUI did not have, including drop-down menus and such.
Score: 24 Votes (Like | Disagree)
ronntaylor Avatar
16 months ago

Of course. Apple steals & deliberately infringes on other company's tech/ip and then has the complete nerve to play victim, refuses to pay what they should for said theft, and drags the company through the courts.

From XeroxPARC to this. Same as it ever was.
Guess you didn't read the article:


The U.S. Court of Appeals for the Federal Court on Thursday confirmed a ruling by the U.S. Patent and Trademark Office invalidating a pair of patents that VirnetX used in its patent infringement lawsuit against Apple...
Score: 19 Votes (Like | Disagree)
EmotionalSnow Avatar
16 months ago

Of course. Apple steals & deliberately infringes on other company's tech/ip and then has the complete nerve to play victim, refuses to pay what they should for said theft, and drags the company through the courts.

From XeroxPARC to this. Same as it ever was.
Except that their patents are unenforceable and invalid. They were granted erroneously.
Score: 14 Votes (Like | Disagree)
CWallace Avatar
16 months ago

It certainly was infringement by Apple as Apple never got a licence for Xeorx's gui to begin with.
Apple didn't need a license for it because they didn't use any of its code as the foundation for the first Mac OS. They took it as inspiration and modified it in many significant ways - ways that made it a better OS than the original Alto OS.

If you look at the Alto's OS and the first Macintosh's OS, the only thing they really share in common is both are in black and white.
Score: 14 Votes (Like | Disagree)
JM Avatar
16 months ago
Now THIS is Apple News that can bring us all together like the good ol’ days.

?
Score: 10 Votes (Like | Disagree)