Apple loses suit filed over Face Time's VPN technology; jury awards VirnetX $625 million

Apple loses suit filed over Face Time's VPN technology; jury awards VirnetX $625 million
VirnetX sued Apple back in 2010 over the use of unlicensed VPN patents employed by the iPhone manufacturer for its Face Time video calling feature. In 2012, Apple was told to pay VirnetX $368 million over the unlicensed use of the patent. Apple tried to defend itself by saying that the technology owned by VirnetX represented a very small part of the larger technology used in Face Time. 

The U.S. Court of Appeals for the Federal Circuit overturned that verdict, deciding that the trial judge erred in the way he instructed the jury on how to compute damages. A second trial was ordered  that combined the original case along with a second suit that had been filed by VirnetX. On Wednesday, a federal jury in Texas awarded VirnetX $625 million. Not only is that figure higher than the original verdict, it topped the $532 million that the plaintiff was asking for. This isn't the first time that the patent portfolio holding company has won some money from an iconic tech company with this patent. In 2010, Microsoft agreed to pay VirnetX $200 million for using its VPN technology without permission.

Apple also filed papers with the court, requesting that U.S. District Judge Robert Schroeder declare a mistrial. Apple claims that VirnetX's lawyer misled the jury during closing arguments.

With $216 billion in cash sitting in Apple's coffers, the tech titan could easily pay the $625 million award. Instead Apple plans on appealing the verdict. Sounding very much like Samsung's filing to the U.S. Supreme Court, Apple said "We are surprised and disappointed by the verdict. Cases like this simply reinforce the desperate need for patent reform." 

source: Reuters

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36 Comments

1. SirYar

Posts: 351; Member since: Jul 02, 2014

"Cases like this simply reinforce the desperate need for patent reform" For once I agree with Apple. Something needs to be done against their patent trolling.

20. AnTuTu

Posts: 1580; Member since: Oct 14, 2012

What goes around comes around?

2. Mfa901

Posts: 291; Member since: Jul 14, 2012

look who is asking for patent reform

17. techperson211

Posts: 1280; Member since: Feb 27, 2014

"We are surprised and disappointed by the verdict. Cases like this simply reinforce the desperate need for patent reform." . The irony.

19. Shocky unregistered

Priceless, coming from Apple.

3. maherk

Posts: 6645; Member since: Feb 10, 2012

Apple have shame. Trying to downplay the effect of this technology, yet they went and sued Samsung for rounded corners lol

4. maherk

Posts: 6645; Member since: Feb 10, 2012

No shame**

22. darkkjedii

Posts: 30693; Member since: Feb 05, 2011

I laughed when I read that part. Like that was gonna sway the judge...

24. jroc74

Posts: 6023; Member since: Dec 30, 2010

THANK YOU!!! "In 2012, Apple was told to pay VirnetX $368 million over the unlicensed use of the patent. Apple tried to defend itself by saying that the technology owned by VirnetX represented a very small part of the larger technology used in Face Time." Really, Apple? No, really?

5. villagerguyz

Posts: 96; Member since: Jul 22, 2015

Patent troll? VirnetX sounds fishy for me.

6. maherk

Posts: 6645; Member since: Feb 10, 2012

Apple said "We are surprised and disappointed by the verdict. Cases like this simply reinforce the desperate need for patent reform." Wait what!!

7. deewinc

Posts: 454; Member since: Feb 21, 2013

Patent reform??? Apple ROTFL

8. PatrickJames

Posts: 1; Member since: Feb 04, 2016

The best way to secure FaceTime, iCloud, WhatsApp, Viber, Facebook, Twitter, Gmail and all other data on all iOS devices, be it an iPhone or iPad, is to use a VPN service called PureVPN. It's got 256-bit of data encryption power and IKEv2 protocol for fast and secure transmission of encrypted data. It's best for being encrypted, undetectable and completely secured on the internet!

9. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

"Cases like this simply reinforce the desperate need for patent reform" As do all your cases against Samsung involving stolen ideas you patented as yours: bit.ly/1QIlMTy bit.ly/1O62SXP bit.ly/1TMm0ID bit.ly/1QIi0JQ bit.ly/1I5UYvp Only took a few tastes of your own medicine to realize it...typical hypocrites (bit.ly/1si5DVX).

10. zeppo

Posts: 200; Member since: Jul 21, 2015

If Apple can sue Samsung for rectangular and rounded corners without a patent, then anyone can sue Apple.

11. johanbiff

Posts: 415; Member since: Mar 31, 2015

are really Apple the one to talk about "Cases like this simply reinforce the desperate need for patent reform"? they got what they deserved IMO

12. SkyfallWalker

Posts: 73; Member since: Jan 28, 2016

Patent reform? This is coming from Apple? O_O

13. SkyfallWalker

Posts: 73; Member since: Jan 28, 2016

...but anyway, good luck.

14. SkyfallWalker

Posts: 73; Member since: Jan 28, 2016

...but anyway, good luck.

15. wargreymon

Posts: 764; Member since: Nov 05, 2013

April 1st already?

16. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Hypocrisy is strong with Apple

18. Supersonic

Posts: 226; Member since: May 15, 2015

Apple getting back at their own coin. A disgusting company.

23. darkkjedii

Posts: 30693; Member since: Feb 05, 2011

Pretty much every for profit company to ever exist is disgusting on some level. That's why they try so hard to keep their dirty laundry secret.

21. darkkjedii

Posts: 30693; Member since: Feb 05, 2011

Lol at Apple on this one. No matter how small the tech is that's being employed, it's still theirs. Shoulda got a licensing deal on that one Apple. Now write that check: pay to the order of darkkjedii.

25. Baracus

Posts: 223; Member since: Sep 15, 2012

Apple crying for patent reform is the equivalent of a burglar calling the police when someone breaks in and steals from them.

29. Techist

Posts: 311; Member since: Jan 27, 2015

More like the burglar calling the police when they discover that someone grabbed something from the van they were stuffing their stolen loot into.

33. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

LMAO, very accurate!

26. 47AlphaTango

Posts: 709; Member since: Sep 27, 2015

What's VPN for, found on iphone?

27. NexusX

Posts: 612; Member since: May 16, 2013

i think you guys should actually research the company before commenting and pointing your fingers at Apple. VirnetX is obviously a patent troll who wants a piece of the Apple pie for vague technology that they never commercialized if you look at their website, VirnetX sells zero product/services other than a stated royalty fee on the claimed patent, there is only vague description of what they do. their board of directors aka people running the company are made of ONE ENGINNER (probably a guy who holds the patent) AND A BUNCH OF BUSINESS/ECONOMIC DEGREE HOLDERS AND LAWYERS. THEY OBVIOUSLY FORMED THIS COMPANY RECENTLY JUST FOR PURPOSE OF SUING APPLE. apple engineers spend years commercializing and perfecting the technology, now some lawyer and a guy with a patent wants his share of the hard-earned profit, US PATENT LAWS DO NEED REFORM.

28. sissy246

Posts: 6907; Member since: Mar 04, 2015

Doesn't matter it wasn't apples patent and they stoled it.

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