Apple loses bid for new trial in VirnetX case, appeal still possible

Posted:
in General Discussion edited August 2018
A federal judge on Thursday denied Apple's motion for a new trial in a long-running patent case leveled by non-practicing entity VirnetX, a suit that left the iPhone maker on the hook for $502.6 million.

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In a final judgment handed down in the U.S. District Court for the Eastern District of Texas, Judge Robert Schroeder entered an order denying an Apple motion for a new trial on certain merits of VirnetX's case. The jurist also denied-in-part and granted-in-part a VirnetX Motion for Entry of Judgment and for Equitable and Statutory Relief.

Details of both parties' motions are unknown as related dockets are currently sealed. With a final judgment entered, however, Judge Schroeder has closed the case.

Apple in April was found by a jury to have infringed on four VirnetX patents with its secure communications products. VirnetX sued Apple in 2012 over the company's VPN on Demand technology and consumer-facing FaceTime and iMessage software and services, initially seeking damages on cumulative product sales involving iPhone 5, the fourth-generation iPad, Macs running OS X Mountain Lion and other supporting devices.

The jury in that case awarded VirnetX $502.6 million in damages, adding to an earlier win that brings the amount Apple owes the NPE to nearly $1 billion.

VirnetX first filed suit against Apple in 2010. The patent holder has seen a handful of wins, but also losses on appeal. In 2012, the same Texas court ordered Apple to pay $368 million for infringing on a single patent, a judgment vacated by the CAFC nearly two years later. That case was rolled in with the original suit as part of a damages retrial in 2016 that slapped Apple with a $625 million penalty.

Judge Schroeder later tossed the huge award, saying jury confusion led to an unfair trial. A pair of retrials followed, ending in a $302.4 million victory for VirnetX that was enhanced to $439.7 million after Apple was found to have willfully infringed on the patents. Apple is appealing that decision and is likely to appeal the current case to a higher court.

Comments

  • Reply 1 of 11
    *ahem East Texas*

    So when this actually goes to a real court - the final appeal will either be a very large reduction in damages, no finding of infringement or the patents will be struck down entirely.

    Why hasn't the USA done anything about the fact that East Texas courts are continuously finding in opposition to everywhere else in the country. It's an embarrassment.
    libertyforalljbdragonlostkiwi
  • Reply 2 of 11
    lkrupplkrupp Posts: 10,557member
    *ahem East Texas*

    So when this actually goes to a real court - the final appeal will either be a very large reduction in damages, no finding of infringement or the patents will be struck down entirely.

    Why hasn't the USA done anything about the fact that East Texas courts are continuously finding in opposition to everywhere else in the country. It's an embarrassment.
    Because our legal system was designed by lawyers for lawyers to make money. Our country is run by lawyers, not the people. Almost all of our politicians are/were lawyers. The Illinois county I live in (99.99% Democrat Party controlled) has been called a judicial hellhole for decades because lower-middle class juries find for the plaintiffs almost 100% of the time no matter what the evidence shows. Railroad lawsuits, asbestos lawsuits, personal injury lawsuits all get filed here because of the “generous” jury awards that can be counted on.
    Rayz2016Carnagelibertyforalljony0
  • Reply 3 of 11
    Our systems are broken....
  • Reply 4 of 11
    SpamSandwichSpamSandwich Posts: 33,407member
    *ahem East Texas*

    So when this actually goes to a real court - the final appeal will either be a very large reduction in damages, no finding of infringement or the patents will be struck down entirely.

    Why hasn't the USA done anything about the fact that East Texas courts are continuously finding in opposition to everywhere else in the country. It's an embarrassment.
    I was under the impression that venue shopping for courts in infringement cases was no longer going to be allowed. I recall News to that effect in the last year or two...

    On an unrelated note, why in the sweet f—-all does iOS automatically capitalize the word news? (See above) That infuriates me.
    edited August 2018
  • Reply 5 of 11
    nunzynunzy Posts: 662member
    This is a travesty! The entire legal system is completely corrupt and this proves it! Apple would never infringe. If you can't innovate, sue Apple instead.

    This makes me sick.
  • Reply 6 of 11
    We’re going to make it. Keep the faith. Stay good. Stay strong. 
  • Reply 7 of 11
    ikirikir Posts: 127member
    No sense.... very sad.
  • Reply 8 of 11
    *ahem East Texas*

    So when this actually goes to a real court - the final appeal will either be a very large reduction in damages, no finding of infringement or the patents will be struck down entirely.

    Why hasn't the USA done anything about the fact that East Texas courts are continuously finding in opposition to everywhere else in the country. It's an embarrassment.
    I was under the impression that venue shopping for courts in infringement cases was no longer going to be allowed. I recall News to that effect in the last year or two...

    On an unrelated note, why in the sweet f—-all does iOS automatically capitalize the word news? (See above) That infuriates me.
    It probably assumes you are referring to the News app.  It only irritates me, though.  I reserve fury for other things.
    edited August 2018 SpamSandwich
  • Reply 9 of 11
    crankercranker Posts: 3unconfirmed, member
    I was under the impression that venue shopping for courts in infringement cases was no longer going to be allowed. I recall News to that effect in the last year or two...
    There was a law that was passed that prevents you from suing a company in a district where they do not have a business. But, Apple has stores in Plano, TX, and maybe one or two more, that are inside the Eastern District's jurisdiction.
    libertyforallSpamSandwich
  • Reply 10 of 11
    nunzy said:
    This is a travesty! The entire legal system is completely corrupt and this proves it! Apple would never infringe. If you can't innovate, sue Apple instead.

    This makes me sick.
    That is a very large unsubstantiated assumption that Apple, or any company would never infringe!  

    I mean Google & Java/Oracle (née Sun)...
    edited August 2018
  • Reply 11 of 11
    gatorguygatorguy Posts: 24,212member
    nunzy said:
    This is a travesty! The entire legal system is completely corrupt and this proves it! Apple would never infringe. If you can't innovate, sue Apple instead.

    This makes me sick.
    That is a very large unsubstantiated assumption that Apple, or any company would never infringe!  

    I mean Google & Java/Oracle (née Sun)...
    They all infringe, most often unintentionally, but occasionally "willfully". This was one of the willful's, but a ridiculously convoluted case.

    It's already been reported on numerous occasions that Apple doesn't respond to infringement claims from most inventors until it becomes a legal case, and I would think that it's probably a very common policy for other large companies. If the IP owner has deep enough pockets to take Apple on and feel they have a good case then they lawyer-up, but otherwise they get ignored. Small companies/individuals have little chance of winning patent cases against big powerful techs like Google or Apple or Microsoft.
    edited August 2018
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