VirnetX v Apple Case Continues, Payout Could Reach Over $1 Billion

Pile of hundred dollar bills.

The case is VirnetX Inc. v. Apple Inc., 12-cv-855, U.S. District Court, Eastern District of Texas (via Bloomberg).

Apple v VirnetX

In a court ruling back in 2012, a judge found that Apple infringed two VPN patents owned by VirnetX. Apple was ordered to pay US$368 million. That order was overturned in 2014 but VirnetX won again in 2016 and Apple paid US$302.4 million.

In February 2020, the U.S. Court of Appeals for the Federal Circuit rejected Apple’s bid to dismiss the lawsuit. Apple then agreed to settle for US$18 million. In April Apple paid VirnetX US$454 million.

Now, VirnetX is asking U.S. District Judge Robert W. Schroeder III to add US$116 million in interest onto the US$503 million jurors awarded it in October. Additionally, the patent holder wants 84 cents in royalties on each infringing device Apple sells in the future. Even if the judge doesn’t agree to tack on interest, Apple will have paid out US$1.2 billion in total.

Apple urged Schroeder to slash the jury’s October verdict by more than 75% to $113 million, arguing jurors should have been told that VirnetX’s two patents were invalidated by the U. S. Patent and Trademark Office. Apple also disagreed with VirnetX’s damages calculations and said the royalty on future sales should be just 19 cents per unit, if anything at all.

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