Apple Is Appealing The $368 Million Award Given To Patent Holding Company VirnetX

Posted Jul 2, 2013

Apple is going to appeal a $368 million award that was given to patent holding company VirnetX.  A federal court in Texas awarded the patent holding company with the Apple penalty.  Apple said that they were appealing on Monday.  The judgement was made by the U.S. District Court for the Eastern District of Texas, Tyler division in the United States Court of Appeals for the Federal Circuit.

The court had a jury trial last year.  The Texas court ordered in February that Apple will have to pay the $368 million in damages to VirnetX for infringement of claims related to four patents.  This amount does not include pre-judgment interest, post-verdict damages, or post-judgment interest.

Two out of four of the pants involve a method of transparently creating a virtual private network between a client computer and a target computer.  The other two patents disclose a secure domain name service as well.

The Texas court denied a motion by Apple to amend the judgment including a court decision by the court to cancel VirnetX’s claim for ongoing royalties in a separate action.  The court also ordered the parties to negotiate a license for a post-verdict royalty without involving the courts.

“We expected Apple to appeal,” stated VirnetX CEO and president Kendall Larsen.  VirnetX filed the patent infringement lawsuit in August 2010 against Cisco Systems and Apple.  Cisco and Apple were given separate trials.  Apple had their trial on October 31, 2012.