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17 October 2017Patents

Apple ordered to pay $439m for infringing VirnetX patents

Apple has been ordered to pay more than $439 million to internet security software company VirnetX, after again being found liable for patent infringement relating to its ‘FaceTime’ technology.

In a statement released yesterday, October 16, VirnetX announced the $439.7 million final jury verdict, which includes wilful infringement, interest and attorneys’ fees.

This includes $1.80 per infringing iPhone, an increase of 50% from the original ruling.

In 2010, VirnetX sued a string of companies including Apple, Cisco Systems and Aastra Technologies for infringement of five patents involving security technologies covering computer-to-computer communication. The complaint specified Apple’s ‘FaceTime’ technology.

Apple was ordered to pay $368.2 million in damages for infringing VirnetX’s patents in 2012, before the US Court of Appeals for the Federal Circuit said the damages award was based on defective jury instructions and ordered a new trial in 2014.

In February 2016, Apple was again ordered to pay damages by the US District Court for the Eastern District of Texas. But that $625 million ruling was vacated six months later, with the court ruling that the case should have been split into two separate trials.

A third trial in September 2016 at the same court led to a similar ruling, in which Apple was ordered to pay $302.4 million to VirnetX. The judge has now added over $130 million in the latest ruling.

US District Judge Robert Schroeder delivered the court’s verdict on September 30, with the ruling becoming unsealed on Friday, October 13. He denied all of Apple’s motions and entered a final judgment in favour of VirnetX.

“This is the third time a jury has ruled in our favour against Apple,” said VirnetX CEO Kendall Larsen.

“The cost of our security technology in infringing devices has been apportioned and is less than a quarter of 1% of the device’s cost.”

He added that the ruling will “greatly assist” the company’s global licensing efforts.

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More on this story

Patents
11 April 2018   Licensing company VirnetX Holding Corp has been awarded $502.6 million by a jury after it found that Apple’s FaceTime infringed four communication technology patents.
Patents
31 August 2018   Apple hit another roadblock in its litigation with licensing company VirnetX yesterday, when a federal judge denied the company a new trial in the patent dispute over FaceTime.
Patents
18 January 2019   The US Court of Appeals for the Federal Circuit has rejected Apple’s request to overturn a $440 million judgment in a patent infringement case won by IP licensing company VirnetX.