Apple Loses 10-Year Long Legal Battle, Will Pay $503 Million To VirnetX
A ten-year lawsuit between Apple and VirnetX ended with a Texas jury ordering Apple to pay the Nevada-based software company. Earlier this year, Apple paid VirnetX $ 454 million in a patent infringement case. He is now responsible for paying $ 502.8 million. Bloomberg reported on the development.
The two companies have been locked in litigation since 2010, when VirnetX sued Apple for infringing four of its patents. The case concerned two of the Cupertino giant’s key services, FaceTime and VPN on demand. Since 2016, the case has sometimes turned in favor of the two companies, resulting in a final settlement with Apple ordered to pay.
VirnetX Inc. v. Apple Inc.
For the uninitiated, VirtnetX is a security software company that held patents on technologies such as VPN on Demand. His case with Apple began when iOS devices began to support FaceTime secure communication and VPN on demand.
VirnetX then accused Apple of patent infringement. The first major decision in the lawsuit came in 2016, when Apple was asked to pay $ 625 million for patent infringement. Later, a federal circuit judge overturned the verdict and ordered two new trials.
After the retrials, Apple was ordered to first pay $ 302 million and ultimately $ 439.7 million to VirnetX. In January 2019, Apple appealed the court ruling after the U.S. Patent and Trademark Office invalidated VirtnetX patents. However, this appeal was dismissed and Apple was again asked to pay the full amount in settlements.
Just before engaging with Apple, VirnetX took a settlement of $ 200 million from Microsoft in 2010. This settlement, too, concerned Microsoft using the VirnetX VPN patents without paying for them. The latter then filed an additional complaint indicating that Windows 7 and Windows Server 2008 R2 infringed its patents.
Bloomberg noted that a pending complaint against VirnetX said the company was “plagued by nepotism, waste and corporate governance failures.” This is because the family of CEO Kendall Larsen has one-fifth of the company’s 21 employees.
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