Apple overturns $502 million verdict in patent dispute
Two VirnetX network security patents found to be invalid | Decision is latest instalment in a 13-year court saga between the firms.
The US Federal Circuit Court of Appeals has overturned a verdict ordering Apple to pay $502 million to VirnetX in the latest instalment of a patent dispute that has run for 13 years.
The damages award was thrown out on Friday, March 31, as the appeals court referred to the US Patent Trial and Appeal Board’s (PTAB) finding that the two VirnetX patents Apple was accused of infringing were invalid.
Following the PTAB’s decision, the Patent and Trademark Office (PTO) cancelled VirnetX’s patents (US patent numbers 6,502,135 and 7,490,151), leaving it without a case against Apple.
VirnetX claimed its two patents, which relate to network security technology, were infringed by Apple products including FaceTime, VPN (virtual private network) on Demand, and iMessage.
In October 2020, a jury at the Eastern District of Texas court found that Apple should pay a royalty of $0.84 on nearly 600 million infringing units. Apple fought successfully to overturn this decision.
In a statement on the firm’s website, CEO and president of VirnetX Kendall Larsen said: “We are disappointed and disagree with the Federal Circuit’s decisions in light of its past rulings on these same patents.
“We are evaluating all of our available options, including potentially seeking rehearing or certiorari review.”
WIPR has contacted Apple for a comment.
History of litigation
The two firms have been embroiled in court cases since 2010, with VirnetX filing multiple lawsuits against Apple. In a separate suit, Apple was ordered to pay the IP licensing company $440 million over claims it had infringed four of its patents, a sum that was upgraded from an initial award of $302 million.
In that dispute, Apple said it should not have to pay damages because it redesigned versions of its FaceTime and iMessage features after VirnetX’s accusations of patent infringement, and it filed an appeal.
Nevada-based VirnetX was founded in 2005. It is an internet security software and technology company, known to generate revenue through patent licensing.
