Apple Pays VirnetX $454 Million for Patent Infringement After U.S. Supreme Court Refuses to Hear Apple’s Appeal

Apple has paid VirnetX a total of $454,033,859.87 following the conclusion of a long-running patent infringement battle, VirnetX announced today.


The patent dispute between VirnetX and Apple dates back to 2010 when VirnetX accused Apple's FaceTime feature of infringing on its intellectual property, and there are multiple lawsuits involved.

In this particular case, Apple was ordered to pay $302 million in October 2016, but with interest and other costs included, the judgement was increased to $440 million. Though Apple appealed the $440 million award many times, courts have continually ruled in VirnetX's favor.

Most recently, Apple attempted to get the U.S. Supreme Court to hear its appeal, but the Supreme Court in February 2020 declined to intervene.

Apple claimed that the U.S. Patent and Trademark Office had canceled "key parts" of many of the patents involved in the case, but the courts rescinded that cancelation, leaving Apple responsible for the $440 million payment.

This is just one of two VirnetX cases that Apple has been fighting. In the second case, VirnetX was awarded $502 million, but the ruling was partially overturned last year and sent back to the lower courts to determine new damages. Apple in February attempted to get a rehearing to determine patent validity, but was denied.
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U.S. Supreme Court Refuses to Hear Apple’s Appeal in $440 Million VirnetX Patent Case

The U.S. Supreme Court today declined to hear Apple's appeal of a $440 million judgment in one of the patent infringement cases brought by VirnetX a decade ago, reports Reuters.


VirnetX was originally awarded $302 million back in October 2016 in the dispute over VPN-related patents, but Apple appealed the ruling multiple times, and with interest and other costs tacked on, the judgment was later increased to $440 million.

Apple argued on appeal that the U.S. Patent and Trademark Office had canceled "key parts" of several of the patents involved in the case, but the courts rescinded that cancelation. Apple continued to appeal the case all the way to the Supreme Court, but the court has opted not to intervene, leaving Apple on the hook for the $440 million judgment.

The case is one of two Apple has been embroiled in with VirnetX over the years. In the other case, VirnetX was initially awarded $502 million but the infringement ruling was partially overturned late last year and the case was sent back a lower court to determine a new amount for damages. Apple attempted to contest the validity of the remaining two patents at issue, but just two weeks ago, the court denied a rehearing on that aspect of the case.


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Apple Won’t Get Rehearing in VirnetX Patent Infringement Battle Dating Back to 2010, Court Rules

Apple will not be able to get a rehearing in its ongoing patent battle with VirnetX to argue that the patents it is accused of infringing are invalid, reports Bloomberg.

The U.S. Court of Appeals for the Federal Circuit today rejected Apple's request to reconsider a November ruling that confirmed Apple infringed on two VirnetX patents.


The patent dispute between VirnetX and Apple dates back to 2010 when VirnetX accused Apple's FaceTime feature of infringing on its intellectual property, and there are multiple lawsuits involved.

In this particular case, VirnetX was awarded $502.6 million in April 2018 after a court ruled that Apple's FaceTime, iMessage, and VPN on Demand features infringed on four VirnetX patents related to communications security.

An appeals court later reexamined the ruling and determined that Apple had infringed on two VirnetX patents, but the other two counts were reversed in November 2019 and the $502.6 million award was vacated. The case was sent back to a lower court to determine whether revised damages can be calculated or if there will be a new damages trial, but the ruling was ultimately in favor of VirnetX.

At this time, with Apple's request for a rehearing on patent validity denied, Apple and VirnetX are awaiting details on the new damages Apple will be required to pay.

In a separate case, Apple was ordered to pay $440 million to VirnetX for similar patent infringement issues. Apple appealed that ruling multiple times as well, but an appeals court in January 2019 ruled in VirnetX's favor, leaving Apple responsible for a $440 million patent infringement fee.


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VirnetX’s $503 Million Patent Win Over Apple Vacated on Appeal in Mixed Result

A legal battle between Apple and VirnetX that dates back nine years has seen a new development today, with a $503 million judgment from 2018 against Apple for patent infringement vacated by an appeals court and the case sent back to a lower court for reconsideration, reports Reuters.


The result is a mixed one for Apple at this point, with the appeals court finding only a partial reversal in affirming infringement by Apple on two counts and reversing on two other counts. The appeals court is sending the case back to district court to determine whether revised damages against Apple can be calculated or if a new damages trial will have to be held.

The case in question is just one of two involving Apple and VirnetX over communications security patents related to VPN, iMessage, and FaceTime. Apple is currently on the hook for $440 million in the other case, but appeals remain in progress.

Tag: VirnetX

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Apple Must Pay VirnetX $440 Million for Patent Infringement, Appeals Court Rules

Apple must pay VirnetX $440 million after an appeals court upheld an earlier judgement in favor of the patent holding company, reports Reuters.

The U.S. Court of Appeals for the Federal Circuit today denied Apple's appeal of a 2016 verdict that awarded VirnetX $302 million, which increased to $439.7 million when taking into account damages and interest calculated during retrials.


VirnetX first sued Apple in 2010, accusing FaceTime of infringing on patents held by VirnetX. The two companies have been fighting in court since then, and Apple in 2017 said it would appeal the final $440 million judgement.

In a separate case that is also still unsettled, VirnetX was awarded an additional $502.6 million from Apple after a court found that Apple's FaceTime, iMessage, and VPN on Demand features infringe on four VirnetX patents related to communications security.

Apple in total owes VirnetX $942 million, but is likely to continue to fight both rulings, as the patents in question have been ruled invalid by a separate court. Apple said it is disappointed with the ruling and will once again appeal.


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Apple Plans to Appeal $439M ‘Final Judgment’ in FaceTime Patent Lawsuit With VirnetX

VirnetX today announced that the United States District Court for the Eastern District of Texas has denied all of Apple's motions in a longstanding FaceTime-related patent lawsuit between the two companies.


The court also granted all of VirnetX's motions in the retrial and increased the royalty rates that Apple owes during the infringement period, resulting in a revised final judgment amount of $439.7 million.

"We are elated with the Court's Final Judgement of $439 million in that not only did it affirm the jury's verdict of $1.20 per infringing iPhone, iPad and Mac Product, but also added for willful infringement, interest and attorney fees. This is the third time a jury has ruled in our favor against Apple," said Kendall Larsen, VirnetX CEO.

VirnetX originally sued Apple in 2010 over allegations that FaceTime's peer-to-peer connection technology infringed upon its patents. VirnetX won its case in 2012, and Apple was hit with a $368.2 million judgment, but the appeals and retrial process has dragged on for over seven years until now.

Of note, the United States District Court for the Eastern District of Texas is a hotbed for patent infringement lawsuits given several favorable outcomes for patent holding entities like VirnetX. Some would even call the company a patent troll, although it does appear to offer at least one product of some kind.

A spokesperson for Apple confirmed that it plans to appeal this final judgment, according to TechCrunch. It noted that the motions can still be appealed even if the original case was already appealed and lost.


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