Apple ordered to pay $440M to VirnetX


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 final judgement is only subject to appeal stemming from new issues unresolved in the first Apple case, remanded back from the US Court of Appeals for the Federal Circuit.

The United States District Court for the Eastern District of Texas released a Final Judgment on Monday in which it establishes that Apple's motions were denied in an ongoing patent infringement case against VirnetX Inc.

VirnetX has won three separate jury trials against Apple, all in the Eastern District of Texas, a longtime hotspot for patent-holding companies seeking to sue tech companies. VirnetX claimed that Apple had infringed on 4 patent technologies that were the basis of FaceTime and some other iOS apps. These include certain iPhones, iPads, and Macs.

Virnetx said it was pleased with the judgement and that the jury's initial royalty rate of Dollars 1.20 per infringing iPhone, iPad and Mac was upheld.

The damages total is nearly $140m higher than the $302.4m Apple was ordered to pay VirtnetX a year ago, before this sum was later thrown out after an appeal by Apple's lawyers. "This is the third time a jury has ruled in our favour against Apple", said Kendall Larsen, VirnetX CEO and President.

US$440 million might not be a huge amount for Apple and the money involved is certainly not the reason behind Apple's effort to appeal against the judgement.

"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".

According to the final judgment, Apple did show willful infringement, and was docked an additional $41 million in penalties. VirnetX also recently entered into a "patent standstill" deal HTC, specifically related to LTE, which essentially means that the two will not file any suits against each other as they continue to negotiate deals.

The finding of infringement by the jury (Docket No. 598) makes Apple's continued sales after the verdict of products with the VPN on Demand and the FaceTime features unreasonably risky or reckless.