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Judge: Apple must pay VirnetX $330,000 a day until a licensing deal is reached

Posted: , by Alan F.

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Judge: Apple must pay VirnetX $330,000 a day until a licensing deal is reached
VirnetX is a company that is in business to profit from purchased patents. Taking other companies to court is part of the regular business operations of the firm. You might recall that last November, a jury in Texas awarded the company $368 million from Apple. At issue were four networking patents that VirnetX claimed Apple infringed on with its FaceTime and iMessage applications. Apple's defense was that even if Apple engineers used technology in creating FaceTime that was similar to what VirtnetX owned the patent to, it was a such a small part of a complex product, that VirnetX should not be entitled to any money.

Apple allegedly infringed on VirnetX's patent with the FaceTime feature

Apple allegedly infringed on VirnetX's patent with the FaceTime feature

Yesterday, a Federal Judge upheld the $368 million award, and denied the Cupertino company's request for a new trial. The judge also ruled that until the two parties get together on a licensing deal for the four patents involved, Apple must pay $330,000 a day to VirnetX. If both sides fail to reach agreement in 45 days, the judge will make a final ruling.

While we are not lawyers, and never played one on television, it sure sounds like there is pressure being applied on Apple to reach an agreement. Also, it is interesting to imagine how Apple's attorneys would have responded had Apple's defense in this case, which was that VirtneX's patent was for a small part of a complex product, been used by one of Apple's rivals-like Samsung-in one of the patent cases where Apple is the plaintiff.

source: SeekingAlpha via AllThingsD

35 Comments
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posted on 27 Feb 2013, 19:41 40

1. InspectorGadget80 (Posts: 6278; Member since: 26 Mar 2011)


HAHAHA LOL APPLE GOT STONE BAD KARMA AGAIN APPLE

posted on 28 Feb 2013, 00:19 7

27. anywherehome (Posts: 971; Member since: 13 Dec 2011)


and better when they dont get a penny from 1bill from Samsung :)

posted on 28 Feb 2013, 16:30

34. lolioslol (banned) (Posts: 182; Member since: 10 Dec 2012)


Hell yeah, how do they like THOSE apples!

posted on 27 Feb 2013, 19:43 28

2. izim1 (Posts: 74; Member since: 04 Feb 2013)


Reading the first 2 sentences I had to go back and make sure which company was which. I mean, you could put "Apple" in place of "virnetx" as the opening word and they would still make sense.

posted on 27 Feb 2013, 19:44 27

3. ama3654 (Posts: 249; Member since: 27 Nov 2012)


Apple again, thieves! steal and change a few bobs then call it their new innovation smh!

Bitter taste of your own medicine

posted on 27 Feb 2013, 19:45 24

4. marchels14 (unregistered)


:D :D :D what goes around comes around.it got what it deserves.

posted on 28 Feb 2013, 00:44

28. Chuck.Norris (unregistered)


Love your avatar :-)

posted on 27 Feb 2013, 19:45 27

5. dorianb (Posts: 370; Member since: 24 Oct 2012)


1. Apple does kinda deserve this. (Rectangles is all I'm saying.)
2. VirnetX patent trolls so hard it's sad. (Why the patent system needs fixing.)

That being said if I were VirnetX I'd hold out/stall negotiation for 30 days or so to milk all I could.

posted on 28 Feb 2013, 10:33

33. NexusKoolaid (Posts: 288; Member since: 24 Oct 2011)


Yeah, I have mixed feelings about this as well. Certainly payback time for Apple, but in the end it's just one patent troll losing to another patent troll. Hard to get excited about that.

posted on 27 Feb 2013, 19:51 22

6. 14545 (Posts: 1106; Member since: 22 Nov 2011)


Has anyone else noticed that when apple infringes on a patent they say "we stole such a tiny part that we shouldn't compensate them", or "we didn't steal". Yet, if someone else borrows a tiny part of their design, they think they are owed the entire company in repayment of that "theft". What gives apple, either you owe, or you don't?

BTW, someone should explain irony to apple.

posted on 27 Feb 2013, 21:14 13

16. Aeires (unregistered)


That's "iRony."

posted on 27 Feb 2013, 19:52 18

7. lyndon420 (Posts: 1717; Member since: 11 Jul 2012)


This is gonna be good. Yes...Yes it will be good yes.

posted on 27 Feb 2013, 20:04 1

8. MartyK (Posts: 702; Member since: 11 Apr 2012)


In spite of how much I dislike Apple business practice; to allow a company who never try to introduce a product to a market, to sue is a disgrace; Apple, Samsung, Microsoft, LG, Nokia, BB, and Google need to join forces to stop these companies from doing this mess, this will come back to bite all these companies in the end!.

posted on 27 Feb 2013, 20:15 13

9. 14545 (Posts: 1106; Member since: 22 Nov 2011)


Apple is no less of a patent troll than VirnetX. Don't get me wrong, I don't condone what VX is doing, but apple is just as guilty in a much worse way.

posted on 27 Feb 2013, 20:17 12

10. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


368 million or 330,000/day ... they should post it on their website "iStole"

posted on 27 Feb 2013, 21:38 3

19. Bernoulli (Posts: 1437; Member since: 01 Sep 2012)


They had to do this back in the UK, where Apple not just lost the case, but also made Apple put in their website that Samsung did not infringe in any of their patents, it was very comical, btw every time I type Apple in my Galaxy note II my mobile thinks I'm trying to say asshole lol

posted on 27 Feb 2013, 20:31 3

11. ramonleonjr62 (Posts: 48; Member since: 17 Oct 2012)


poor apple... paid it b##th lol

posted on 27 Feb 2013, 20:47

12. gallitoking (Posts: 4684; Member since: 17 May 2011)


so now Apple is being bully by a patent troll and Apple is still the bad guy, but this company you guys are applauding will go after Google and see how your tune will be change...

posted on 27 Feb 2013, 20:57 12

13. 14545 (Posts: 1106; Member since: 22 Nov 2011)


D@mn you're an idiot. No one here is saying that VX is in the right here. But what they are doing is NO DIFFERENT than what your beloved apple has done/is doing. The difference is that most here can see apple for what they are, just a bigger, richer, VX.

posted on 27 Feb 2013, 23:21 7

26. rusticguy (Posts: 2826; Member since: 11 Aug 2012)


Apple is role model for all Patent Trolls :)

posted on 28 Feb 2013, 01:13

30. MorePhonesThanNeeded (Posts: 618; Member since: 23 Oct 2011)


You do realize that Apple also has it's own little patent trolls that it rents it's patents out to have them bother other companies to pay royalties. What goes around comes around...VirtnetX is a troll who needs to pass up those patents since they aren't doing a damn thing with them except trolling. USPTO should take control of patents when this happens and use them to get royalties to use for public benefit. Since the companies using the patents are always making a buck off the public anyway, might as well get them to contribute to the public by paying royalties for the patent and keeps the trolls beaten down forever.

posted on 27 Feb 2013, 21:01 6

14. taz89 (Posts: 2014; Member since: 03 May 2011)


apple complains when ''small'' patents are used against them but they are more than happy to use it against others

posted on 27 Feb 2013, 21:08 5

15. piyath (Posts: 150; Member since: 23 Mar 2012)


I THINK THIS ISN'T SOLELY & ONLY ABOUT MONEY. THIS IS ABOUT HOW APPLE HAVE TRIED HARD TO RUIN THEIR REPUTATION IN FRONT OF THE WHOLE WORLD.
THEIR FAME & DIGNITY ARE ALL FADES AWAY WITH SUCH NEWS ALL AROUND THE WORLD WITHIN NO TIME.. APPLE IS RUSTING

posted on 27 Feb 2013, 21:56 3

23. omar300 (Posts: 174; Member since: 24 Jun 2012)


i wish these news made it to giant post of advertisement like apple has one for its own. only people who read blog know such dirty stuff about apple all the other people who are blinded by apple dont see this and they need to be shown apple real face.

posted on 27 Feb 2013, 21:21 7

17. Taters (Posts: 2702; Member since: 28 Jan 2013)


Good times! Instead of investing 12 billion in advertising Samsung should just hire a bunch of these companies just to give Apple a bigger taste of what they deserve.

posted on 27 Feb 2013, 21:25

18. thachlel (Posts: 61; Member since: 20 Apr 2012)


Not much compare to Apple have 1.5 b from Samsung

posted on 27 Feb 2013, 21:51 2

21. omar300 (Posts: 174; Member since: 24 Jun 2012)


only 23% of 1.5b but still its a good feeling someone stood up to bully. samsung lost the case because of "visuals" this is intellectual stealing of programming codes.

posted on 27 Feb 2013, 21:40 1

20. darkkjedii (Posts: 10645; Member since: 05 Feb 2011)


Apple should just pay them outta their 1.5 billion dollar Samsung settlement.

posted on 27 Feb 2013, 21:53 2

22. omar300 (Posts: 174; Member since: 24 Jun 2012)


that money should go to htc to be honest.
that company is doing dearly bad.
htc needs money and new ceo.
they have great engineers. but the business men of that company will drown it.

posted on 27 Feb 2013, 22:16 4

24. Izoe (Posts: 104; Member since: 02 Sep 2010)


Unfortunately, that is yet to be settled(and might never be paid), so for now Apple will have to let some cash sip out of their own stash

posted on 27 Feb 2013, 22:55 2

25. lyndon420 (Posts: 1717; Member since: 11 Jul 2012)


Can't see VertneX jumping to a settlement too quickly.

posted on 28 Feb 2013, 01:08 1

29. ilia1986 (unregistered)


What a great way to open the day with! >:D

posted on 28 Feb 2013, 09:24 1

31. lauremar (Posts: 181; Member since: 29 Feb 2012)


Oh snap... Apple got a taste of their own medicine, a hard pill to swallow.

posted on 28 Feb 2013, 10:30 1

32. dragonscourgex (Posts: 307; Member since: 16 Jan 2012)


Apple is getting what they deserve. Side note, company like VirtneX are 100x worse then Apple. They need to be take out of the equation all together.

posted on 28 Feb 2013, 19:31

35. V3TTOO (Posts: 27; Member since: 29 Nov 2012)


I remember an old Apple patent that was very small to the overall product:

Just search "slide-to-unlock" on here.

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