Apple's FaceTime workaround costs $2.4M/month, 500k complaints

|By:, SA News Editor

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.