Apple just can’t catch a break—now a US court has ordered Apple to pay $368 million to VirnetX for infringing on four patents related to Apple’s FaceTime technology. VirnetX initially sued for $708 million. These patents are U.S. Patent Nos. 6,502,135, 7,418,504, 7,921,211, and 7,940,151, which all relate to establishing secure communication links between devices. VirnetX is a technology firm specializing in virtual private networks (VPNs), which allow companies to establish secure links to remote computers.
Commenting on the win, Kendall Larsen, VirnetX CEO and President, said in a statement: “We are extremely pleased with the outcome of our suit with Apple. This victory further establishes the importance of our patent portfolio.”
VirnetX isn’t just targeting Apple, although it has another separate claim against Apple at the U.S. International Trade Commission in Washington, D.C. VirnetX also has other pending cases against other technology companies such as Cisco, Avaya, and Siemens. VirnetX also had a case against Microsoft, winning a $200 million settlement from them for similar claims. Upon hearing of VirnetX’s victory against Apple, VirnetX stock surged 28 percent from $26.29 a share to $33.61 a share.
“Apple does not owe money to VirnetX,” Danny Williams, a lawyer with Williams, Morgan & Amerson in Houston who represents Apple, told the jury. “VirnetX is not entitled to money for things they did not invent. The VirnetX technology, if used, is a small part of very large, complex products.”