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VirnetX (VHC -16.8%) crashes after the USPTO grants requests from Apple (AAPL) and Cisco (CSCO),...

VirnetX (VHC -16.8%) crashes after the USPTO grants requests from Apple (AAPL) and Cisco (CSCO), both of whom VirnetX is suing, to reexamine one of its patents.  VirnetX says it welcome the USPTO's move, though this simply appears to be an attempt to save face. (patent filing)
Comments (10)
  • broadwing
    , contributor
    Comments (2) | Send Message
     
    Please if you can, tell me how is it determined that VHC's press release is merely " an attempt to save face", and that there is nothing to their claim that this patent re-examination is usually requested by the company being sued, and that such re-examination requests are usually granted?
    4 Oct 2011, 01:11 AM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (753) | Send Message
     
    The part about the company welcoming the move appears a face-saving remark, rather than the other comments you mention.
    4 Oct 2011, 07:29 AM Reply Like
  • tmbdab
    , contributor
    Comment (1) | Send Message
     
    Absolutely not a face saving move. After the patent is reviewed and confirmed, VHC will have a rock solid case. Just makes sense that they would welcome it. Patent review by a defendant would be the norm for a case like this. How do you know if the patent actually was violated if you don't review it. Your comment is very naive.
    4 Oct 2011, 12:22 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (753) | Send Message
     
    I think you'll be hard-pressed to find any company that honestly welcomes a USPTO decision to review a granted patent at the request of two companies that it's suing. Especially when the company's shares drop 17% on the news.
    4 Oct 2011, 12:35 PM Reply Like
  • Dustin Moore
    , contributor
    Comments (270) | Send Message
     
    Most reexam requests are granted..so it is hard to read too much into the USPTO decision to open up the reexam on VHC patents.
    4 Oct 2011, 05:22 PM Reply Like
  • broadwing
    , contributor
    Comments (2) | Send Message
     
    The real issue is whether or not Apple or Cisco can provide proof that there was a hitherto unknown prior establishment/use by someone else of the VHC patented idea, as they seem to claim. This could be countered by VHC, as they apparently did security work for the CIA years ago, and are as likely as anyone else to have encountered or used/developed such patentable ideas first.
    6 Oct 2011, 09:41 AM Reply Like
  • cqsmith
    , contributor
    Comments (4) | Send Message
     
    How long does the USPTO usually take to reexamine a patent?
    11 Oct 2011, 06:11 PM Reply Like
  • Dustin Moore
    , contributor
    Comments (270) | Send Message
     
    If the commissioner decides that there is a substantial question of patentability, the reexamination will proceed.
    [This is where we are at with the VirnetX re-exam]
    The patent holder is given at least two months to present any arguments or amendments concerning the new prior art. {VirnetX will likely respond a bit sooner} If the reexamination results from a third party request, the PTO will give the third party at most two months to provide a reply to the arguments and amendments offered by the patent holder. At this point, the third party’s participation in the reexamination stops.

     

    VirnetX and the examiner will go back an forth with filings and interviews.

     

    VirnetX can appeal any decision. Apple and Cisco CANNOT.
    11 Oct 2011, 11:02 PM Reply Like
  • cqsmith
    , contributor
    Comments (4) | Send Message
     
    So, what I am hearing is that we'll have an initial decision sometime before January?
    12 Oct 2011, 01:53 PM Reply Like
  • Dustin Moore
    , contributor
    Comments (270) | Send Message
     
    Not likely, but it is impossible to say.

     

    VirnetX has until early Dec. to respond to the opening of the reexam.

     

    Apple/Cisco have 2 months after that to respond. After this, they no longer participate in the process.

     

    If the USPTO still has issues/questions they will work with VirnetX on them.

     

    So, in the end, it is up to the USPTO examiner when this will be completed, as well as how quickly (or slowly) both sides respond.
    12 Oct 2011, 07:33 PM Reply Like
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