Apple hit with $439m judgement in VirnetX case

Patent licensor VirnetX Holding Corporation said the US District Court for the Eastern District of Texas, Tyler Division, entered a final judgement regarding post-trial motions resulting from a prior $302.4 million jury verdict for VirnetX in the ongoing patent infringement action between VirnetX and Apple.

VirnetX said the total final judgement amount “including jury verdict, willful infringement, interest, costs and attorney fees” is $439.7 million.

It had been alleged Apple used VirnetX patented internet security technology without permission in features including its FaceTime application.

“In the order, the court denied all of Apple’s motions: motion for judgment as a matter of law of non-infringement, motion for judgment as a matter of law on damages, motion for a new trial on infringement, and motion for a new trial on damages,” said VirnetX.

“The court granted all VirnetX’s motions; motion for willful infringement and enhanced the royalty rate during the willfulness period by 50 percent, from $1.20 to $1.80, awarding VirnetX enhanced damages in the amount of $41,271,364.80 against Apple thereby, granting VirnetX a total sum of $343,699,314.80 in pre-interest damages.

“The court also awarded costs, certain attorneys’ fees, and prejudgment interest to VirnetX, and directed the parties to meet and confer regarding these amounts.

“On October 13, 2017, having met and conferred and having reached agreements on all amounts, parties jointly filed a motion asking the court to grant VirnetX an additional sum in the amount of $96,028,103.58 in agreed Bill of Costs, Attorneys’ Fees, and Prejudgment Interest.

“The Final Judgement is only subject to appeal stemming from new issues unresolved in the Apple I case, remanded back from the United States Court of Appeals for the Federal Circuit.

“The total Final Judgement amount including Jury Verdict, Willful Infringement, Interest, Costs and Attorney Fees is $439,727,418.”

According to a report in TechCrunch, Apple will appeal the final judgment.

The TechCrunch report said all four VirnetX patents in the suit “have been invalidated by the US Patent and Trademark Office, or its Patent Trial and Appeal Board, or both” — but that the invalidation is not legally binding until all appeals have been exhausted.

VirnetX CEO Kendall Larsen said: “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.

“This Final Judgement amount is large because sales of Apple’s infringing products are large.

“The cost of our security technology in infringing devices has been apportioned and is less than a quarter of one percent of the device’s cost.

“We believe this established per device rate for security is very reasonable and will greatly assist us with our domestic and global licensing efforts.”