- The workaround Apple has developed so that its FaceTime video calling service does not infringe on a VirnetX (VHC -2.2%) VPN patent is costing the company $2.4M a month in fees to Internet content distribution companies that now handle the routed calls. Apple has also logged 500K complaints from customers since changes were made in April.
- The backend workaround comes after VirnetX was awarded a $368M verdict in its patent infringement case against Apple last year.
- Discussions over royalty payments and licensing are ongoing. However, the costs Apple has borne in its attempt to find a workaround appear to be a net positive for VirnetX, not only in providing more leverage at the negotiating table, but also in validating its IP.
- Earlier in Aug., VirnetX added the IPhone 5, fifth generation iPod touch, iPad 4, iPad mini, and late-model Macs to the list of infringing devices in another patent suit against Apple involving its VPN technology.