Apple Ordered to Pay $502 Million in VirnetX


On Tuesday, a federal jury awarded VirnetX, an Internet security company hefty damages. Apple was found to have violated VirnetX patents related to secure communication in its FaceTime, iMessage, and VPN On Demand services. Bloomberg reported that VirnetX is entitled to $502.6 million in damages for the alleged infringement. The company generated just $1.5 million in revenue in all of 2017.

The battle between Apple and VirnetX was going on since 2010. VirnetX accused Apple of violating its patents in the iPhone and other devices that use FaceTime and iMessage. The courts were in favor of VirnetX in the past and the company was awarded $302 million. A judge had previously set the compensation to $402 million. As of now, the amount exceeds $500 million.

Apple was in denial of the accusation that its devices have infringed the patents of VirnetX. It tried to battle the previous losses. In 2014, an earlier ruling in VirnetX’s favor was rejected by a higher court. This resulted in a retrial.

In a statement to Bloomberg, VirnetX CEO, Kendall Larsen termed the compensation amount to be “fair.”

Though, Apple hasn’t commented on the verdict yet. Bloomberg notes that the Patent Trial and Appeal Board said in 2016 that VirnetX patents are invalid. This is a possible way out for Apple and possibly win the long-fought battle.

Neither VirnetX nor Apple immediately responded to a Fortune request for comment on the damages.

In other news, Apple is being sued by Firstface, a Korean company which claims that it holds a patent regarding one of the key aspect of Touch ID.

“The solution that activates the smartphone screen upon authenticating a user’s fingerprint was something unprecedented before Jung’s invention,” [said] Shim Young-tack, another Firstface co-CEO who also serves as a professor at the Korean campus of New York State University.

It is being suspected that Firstface is a patent troll company. A patent troll company is set up for buying up patents and then commencing lawsuits for alleged infringement.

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Harry Potter

An engineering graduate, Harry turned to writing after a couple of years of experience in core technology field. At The iBulletin, Harry covers latest updates related to trending apps & games on the app store.


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