VirnetX versus Apple saga over, with $454M paid for patent infringement

Posted:
in General Discussion edited March 2020
Apple has paid VirnetX $454 million, the latter company announced Friday, capping-off a decade-long patent dispute between the two firms.

After a decade of litigation, at least one of the cases between Apple and VirnetX appears to be over.
After a decade of litigation, at least one of the cases between Apple and VirnetX appears to be over.


VirnetX's announcement comes a few weeks after the U.S. Supreme Court refused to hear Apple's latest appeal. Apple argued that it would be "exceedingly unjust" if a previous judgement from 2017 was upheld because it involved invalidated patents.

In a press release, the security software company said it received a payment of $454,033,859.87 in total from Apple.

The case itself dates back to 2010, when VirnetX filed a lawsuit accusing Apple of infringing on four patents with its FaceTime and VPN on Demand features. Those patents covered secure network technology, such as virtual private networks (VPNs) and secure communications links.

In 2016, a federal jury at the East Texas Federal District Court unanimously ruled Apple pay $625 million for willfully infringing on four VirnetX patents. That award was eventually tossed out by a U.S. Court of Appeals for the Federal Circuit judge, with two retrials ordered.

Later, in October 2016, Apple was ordered to pay $302 million per the results of one of those retrials. Another judge later bumped that amount up to $439.7 million including interest and other costs.

Since then, Apple has appealed that decision several times over, but courts have seemingly always sided with VirnetX.

After several key parts of relevant VirnetX patents were invalidated, Apple attempted to appeal again on the basis of that U.S. Patent and Trademark Office decision. When yet another U.S. court rescinded that cancelation, it left Apple on the hook for the full amount.

The verdict concerns one of two cases that VirnetX has brought against Apple. The second case, in which VirnetX was awarded $502 million, has been partially overturned and sent back to lower courts.

Apple has not publicly commented on the verdict or the payment to VirnetX.

Comments

  • Reply 1 of 10
    SpamSandwichSpamSandwich Posts: 33,407member
    If this had been settled ten years ago instead it would’ve been so much smarter.
  • Reply 2 of 10
    spice-boyspice-boy Posts: 1,450member
    Apple must have dragged this out to bleed VirnetX of cash until they gave up. 
  • Reply 3 of 10
    wood1208wood1208 Posts: 2,913member
    Sad day for those who innovate for the better of society. Hate patent trolls.
    MacQcwatto_cobrajony0
  • Reply 4 of 10
    StrangeDaysStrangeDays Posts: 12,877member
    Software patents on ideas rather than coded implementations -- the great slot machine scam that keeps paying out.
    flyingdpchasmwatto_cobrajony0
  • Reply 5 of 10
    spice-boy said:
    Apple must have dragged this out to bleed VirnetX of cash until they gave up. 
    They did not.  Even if that was Apple's plan (it wasn't), they would have had to drag this out for a lot longer.  Virnetx was getting by on that $200+ million dollar settlement they made with MS back in 2010.  Now they're getting at least $450M from Apple with more possibly on the way pending the outcome of the 2nd trial for revised damages.

    Unfortunately, this success over Apple will probably only 1. embolden them to go after another big fish and 2. provide them with a war chest to do it.
    flyingdpjony0
  • Reply 6 of 10
    LeoMCLeoMC Posts: 102member
    If this had been settled ten years ago instead it would’ve been so much smarter.
    The biggest shareholders of Apple are the same biggest shareholders of VirnetX, which means this trial just got them at least .5 B $ tax exemption :).
    edited March 2020
  • Reply 7 of 10
    gilly33gilly33 Posts: 434member
    LeoMC said:
    If this had been settled ten years ago instead it would’ve been so much smarter.
    The biggest shareholders of Apple are the same biggest shareholders of VirnetX, which means this trial just got them at least .5 B $ tax exemption :).
    LeoMC said:
    If this had been settled ten years ago instead it would’ve been so much smarter.
    The biggest shareholders of Apple are the same biggest shareholders of VirnetX, which means this trial just got them at least .5 B $ tax exemption :).
    And you know this how?
    MacQc
  • Reply 8 of 10
    LeoMCLeoMC Posts: 102member
    gilly33 said:
    And you know this how?
    By being smart and knowing where to look for facts.
    chasm
  • Reply 9 of 10
    BrahmanBrahman Posts: 7unconfirmed, member
    wood1208 said:
    Sad day for those who innovate for the better of society. Hate patent trolls.
    Too bad you don't know the definition of a patent troll.  Everyone that owns these patents work for VHC,  Sour grapes or what?
  • Reply 10 of 10
    BrahmanBrahman Posts: 7unconfirmed, member
    spice-boy said:
    Apple must have dragged this out to bleed VirnetX of cash until they gave up. 
    They did not.  Even if that was Apple's plan (it wasn't), they would have had to drag this out for a lot longer.  Virnetx was getting by on that $200+ million dollar settlement they made with MS back in 2010.  Now they're getting at least $450M from Apple with more possibly on the way pending the outcome of the 2nd trial for revised damages.

    Unfortunately, this success over Apple will probably only 1. embolden them to go after another big fish and 2. provide them with a war chest to do it.
    You mean fortunately, don't you.  Or do you think patent pirates, which APPL has shown to be over and over again, should be allowed to break any laws they deem necessary based on their scale and their "innovation" capability?  And yes, it is obvious that APPL did try to bleed VirnetX out of cash.  They were probably trying to buy them for pennies on the dollar, which is another trait of that great company.
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