PATENT INFRINGEMENT CASE: APPLE VS. VIRNETX
The case is VirnetX Inc., et al. v. Apple Inc., No. 6:12-cv-00855.
For a general overview about the case, please visit my previous blog post.
- The Lawsuit: In 2012, VirnetX, an Internet security software and technology company holding multiple patents, accused Apple of violating four of its patents, which mostly involve methods for real-time communications over the Internet. Apple allegedly used VirnetX's security tech in both FaceTime and iMessage.
- VirnetX had previously purchased these patents from a company called Science Applications International Corporation.
- Initial Verdict: A jury found Apple guilty of violating the four patents, and ordered the company to pay VirnetX $368 million.
- Verdict following Apple's appeal: However, Apple appealed and won on a technicality after VirnetX failed to prove that consumers were buying iPads and other gadgets because of the software that violated VirnetX's patents.The appeals court vacated the damages, and sent the case back to the East Texas District Court for a retrial.
- Apple even revised its iMessage, FaceTime and VPN software so that it avoids anything covered by VirnetX's patents.
- Retrial Verdict: Unfortunately for Apple, the new jury found Wednesday that Apple owed even more to VirnetX because it "willfully" violated the company's patents. On February 03, 2016, VirnetX won $625.6 Million Patent Infringement verdict against Apple in East Texas. This verdict also includes an award based on the jury's finding that Apple's modified VPN On Demand, iMessage and FaceTime services have continued to infringe VirnetX's patents.
- Post-verdict Reactions:
- The law firm representing VirnetX has issued a statement, with attorney Jason Cassady saying "The jury saw what we have been saying all along: Apple has been infringing VirnetX's patented technology for years."
- Apple claimed that it is going to appeal and maintains that it "independently designed the technology over many years." I think that Apple isn't worried about paying the $625 million given that it made $216 billion in the fourth quarter, but is more likely interested in discouraging other would-be profiteers that might be tempted to file lawsuits of their own.
Sources:
Hey,
ReplyDeleteI really like the way you laid out the details of the case, trial, appeal, etc. This was a great summary!I also liked that you included quotes from VirnetX's attorney
This is a really good post, Srushti. I like how you laid the case out on a timeline--I hadn't quite understood the verdicts until now. How interesting that the court ordered Apple to pay even more money after they appealed the decision. Good thing it's practically pocket change for Apple.
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