Apple Inc. was informed to pay VirnetX Holding Corp. $502.8 million, the most recent jury verdict in a decade-long saga over patents for safe communications.
The jury in Tyler reached its verdict in about 90 minutes. It was requested to resolve solely how a lot Apple owes VirnetX in royalties for VPN on Demand, a characteristic that enables customers entry to digital personal networks. An appeals courtroom had upheld an infringement discovering relating to VPN on Demand.
The businesses have been embroiled in litigation for a decade. VirnetX, which mentioned its innovations stemmed from know-how it developed for the U.S. Central Intelligence Company, argued that each VPN on Demand and Apple’s FaceTime options have been utilizing its innovations.
VirnetX had informed the jury it was entitled to greater than $700 million. Apple had countered that it owed about $113 million, claiming the royalty price must be not more than 19 cents per unit. The jury settled on 84 cents per unit.
Representatives of Apple and VirnetX didn’t instantly reply to requests for touch upon the decision.
Apple beforehand paid VirnetX $454 million due to a verdict over earlier variations of the options. Apple has launched an aggressive marketing campaign to invalidate VirnetX patents, however its victories on the U.S. Patent and Trademark Workplace hadn’t are available time to keep away from its losses in district courtroom.
This trial concerned a distinct case with newer variations of VPN on Demand. The trial was required after an appeals courtroom threw out a part of the infringement discovering, saying the corporate had redesigned its FaceTime characteristic to keep away from VirnetX patents so the $503 million damages awarded on this case needed to be recalculated.
VirnetX, which hasn’t been in a position to acquire traction with its personal Gabriel software program, depends on patent royalties for its income. Previous to Apple, its largest fee got here from a $200 million settlement with Microsoft Corp. in 2010.
Whereas it’s in search of one other massive payout from Apple, the corporate is preventing allegations that Chief Government Officer Kendall Larsen’s household makes up a fifth of the corporate’s 21 staff and the agency is “affected by nepotism, waste, and company governance failures,” in keeping with a criticism pending in Delaware Chancery Court docket.
VirnetX has requested to have the Chancery Court docket case dismissed, saying the “litany of gripes” by the proprietor of 5 shares of the corporate’s inventory is all public data that doesn’t contain any self-dealing.