Apple fails to overturn VirnetX patent verdict, could owe over $1.1 billion

Apple fails to overturn VirnetX patent verdict, could owe over $1.1 billion


A federal judge denied that Apple Inc. had shelved or reduced its bid for VirnetX Holding Corp’s US$502.8 million patent infringement ruling, and awarded interest and royalties that could increase Apple’s investment by more than 1.1 billion. Total expenditures in two lawsuits in US dollars.

In a ruling issued on Friday, U.S. District Court Judge Robert Schroeder in Tyler, Texas rejected Apple’s request for a new trial and other requests.

These included that VirnetX’s award should not exceed $113.7 million, and that jurors should have been told the U.S. Patent and Trademark Office had deemed VirnetX’s claims “unpatentable.”

Jurors in October found that Apple infringed two VirnetX patents related to secure networks, known as virtual private networks, to which owners of various iPhones and iPads may connect.

Schroeder also awarded royalties of 84 cents per unit for future infringements, mirroring the rate set by the jury. Apple had said future royalties should be zero, or else no more than 19 cents per unit.

Apple and VirnetX did not immediately respond to requests for comment.

In afternoon trading, VirnetX shares were up 54 cents, or 10.8%, at $5.63.

Apple, based in Cupertino, California, and VirnetX, based in Zephyr Cove, Nevada, have battled in patent litigation for more than a decade.

In March last year, Apple paid $454 million to VirnetX, after the U.S. Supreme Court refused to hear the iPhone manufacturer’s appeal in an earlier patent case.

Apple stated in court documents on December 18 that the latest ruling may increase the payouts in these two cases to $1.116 billion.

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