APPLE VS VIRNETX
The Patent Infringement Case that costed Apple $626 million
What's the case?
In 2012, VirnetX accused Apple of violating four of its patents, claiming that iMessage, FaceTime and other Apple software infringed on its patents. The final verdict on the case was released in February 2016.
Who are the parties involved?
Apple, as we all know it, is a multinational technology company most famously known for iPhones, iPads, and Macbooks.
VirnetX is an Internet security software and technology company with patented technology for secure communications. VirnetX has been labeled a "patent troll" because it is a patent holding company and sells just a single product. It has just 14 employees and rents office space for $5,000 a month. The company makes money by licensing patents to other firms -- and by suing businesses that it believes has infringed on its intellectual property. It owns about 80 patents.
What was the verdict?
VirnetX first won the lawsuit but then Apple appealed and the case went for a retrial. However, unfortunately for Apple, it lost the lawsuit and was asked to pay ~$626 million as it was found to have infringed on VirnetX's patents.
Some interesting cases of VirnetX:
- VirnetX first sued Apple in 2010 over the alleged use of virtual private network (VPN) patents in FaceTime video chats, and has been successful enough in court to wring hundreds of millions of dollars out of Apple.
- It also settled out of court with Microsoft for $200 million in 2010 and filed another lawsuit against the company in 2015.
- It also filed a lawsuit against Cisco last year, but lost the case.
It is incredible to think that a company that does not provide any service or product makes millions of dollars through patent litigation!
To know more about the details of the case, read my next blog post. Here's the video:
Hi Shrushti,
ReplyDeleteFirst of all, great post! I liked that you broke your post down into categories. It really made the post easier to read and to follow along with the flow. I also enjoyed that you wrote about some interesting facts about VirnetX outside of the Apple case. It made me understand the company and their reason for suing Apple more comprehensively.
Hi Srushti,
ReplyDeleteYour post is really organized, and this makes me want to read more about the case! I wonder for how long VirnetX will be around and in business. They only target big companies, too! If it is not Apple, it is Google. They know what they are doing, I guess. Thanks for the post :)