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VirnetX Holding Corporation (VHC)

  • Dec. 19, 2014, 1:39 PM
    • VirnetX (NYSEMKT:VHC) and Microsoft (NASDAQ:MSFT) have ended their legal battle.
    • Microsoft has "agreed to pay $23 million to VirnetX to settle the patent dispute and expand Microsoft's license," and both parties have agreed to end current litigation and patent review proceedings between them. All other deal terms are undisclosed.
    • Back in 2010, Microsoft agreed to pay VirnetX $200M in a VPN patent settlement. VirnetX's shares remain halted for now.
    • Update (1:45PM ET): Shares have resumed trading, and are up 20.7%.
  • Dec. 19, 2014, 1:10 PM
    • VirnetX (NYSEMKT:VHC) was up 17.6% on the day prior to the halt, with very strong volume.
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  • Dec. 19, 2014, 12:45 PM
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  • Dec. 17, 2014, 11:53 AM
    • After opening nearly unchanged, VirnetX (NYSEMKT:VHC) has gradually shot higher. 334K shares have changed hands vs. a 3-month daily average of 411K.
    • Yesterday, VirnetX stated the federal appeals court that in September reversed infringement rulings for two patent claims asserted against Apple had denied the company's request for an en banc review of the decision. However, the company added it's pleased "the court will issue its final decision confirming the validity of our patent claims as well as Apple's infringement with respect to VPN On-Demand."
    • Shares closed up 1.2% yesterday following the announcement.
  • Dec. 15, 2014, 1:22 PM
    • Vringo was denied a request for an en banc review of the adverse appeals court ruling its received in August for its infringement suit against Google. Unwired Planet received an unfavorable claim construction ruling for its own suit against Google.
    • Shares of both of the aforementioned companies are down over 30%. Fellow IP licensing firms VirnetX (VHC -8%) and Document Security (DSS -6.8%) are following them lower, albeit on modest volume.
    • VHC and DSS have received adverse rulings of their own this year (I, II), as courts take a tougher stance towards IP firms following the Supreme Court's June software patent ruling.
  • Dec. 4, 2014, 11:15 AM
    • VirnetX (VHC +5.8%) has opened up a beta program for its Gabriel secure IP connection platform and collaboration suite to the general public. The company plans to officially launch Gabriel in 1H15.
    • VirnetX, which has been granted a slew of patents related to Gabriel, asserts the solution will offer companies better control over confidential data than other secure IP-based communications platforms.
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  • Nov. 14, 2014, 2:47 PM
    • VirnetX (VHC +2%) chairman/CEO Kendall Larsen discloses he bought 3,850 shares on Wednesday at $5.12.
    • Larsen's purchase came with VirnetX down over 65% from where it traded prior to September's Apple ruling.
  • Oct. 17, 2014, 2:24 PM
    • The White House has nominated Michelle Lee, once Google's lead patent counsel, to head the USPTO. Lee is currently the USPTO's deputy director.
    • Google, like several other tech giants, has been a strong proponent of overhauling the U.S. patent system, with an eye towards limiting software patents and making it easier for defendants to recover legal fees from perceived patent trolls in the event that they win.
    • In June 2013, the White House unveiled a slew of executive actions and legal actions meant to curtail patent system abuses. This year, the Supreme Court upheld the patentability of software concepts, but also set limits. That ruling has been followed by a string of adverse decisions levied by lower federal courts against companies pursuing infringement claims.
    • IP licensing firms: ACTG, VHC, WILN, VRNG, CRDS, DSS, FNJN, MARA
  • Oct. 17, 2014, 12:15 PM
    • Much as Vringo just did for the unfavorable federal appeals court ruling it received for its Google suit, VirnetX (VHC -2.3%) has filed to request an en banc review of the adverse September appeals court ruling it received for its Apple suit.
    • VirnetX argues the September ruling is "contrary to the patent statute and Supreme Court precedent," and is asking the court to "rehear its decision with respect to damages and affirm the district court's damages award against Apple in full."
    • It's also asking for the court to "reinstate the jury's award that Apple infringed the '504 and '211 patents on the basis that the district court correctly construed the claim term 'secure communication link'."
    • Shares are down 68% from where they traded the day before news of the Apple ruling broke.
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  • Oct. 8, 2014, 5:38 PM
    • Top gainers, as of 5:15 p.m.: RT +18.8%. GSAT +6.6%. VHC +5.6%. SALT +4.9%. ACAD +4.6%.
    • Top losers, as of 5:15 p.m.: KFX -20.6%. GPS -8.1%. VNET -6.2%. WFT -5.3%. TWI -4.3%.
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  • Oct. 2, 2014, 12:45 PM
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  • Sep. 26, 2014, 1:46 PM
    • Patent licensing firms VirnetX (VHC +15.2%), Crossroads (CRDS +12.8%), and Document Security (DSS +9.4%) are among the day's biggest gainers. Shares of all three companies had fallen hard in recent weeks (VirnetX especially).
    • End-of-quarter short-covering could be contributing to VrinetX and Document Security's gains: The companies respectively had 17.7M and 2.3M shares shorted as of Sep. 15. Crossroads only had 240K shares shorted.
    • Earlier this week, the WSJ observed federal courts have increasingly been making adverse rulings on software patents since June's Supreme Court ruling. "This is only the beginning of the fallout," Stanford law prof. Mark Lemley is quoted as saying.
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  • Sep. 26, 2014, 12:45 PM
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  • Sep. 24, 2014, 2:06 PM
    • The USPTO has granted VirnetX (NYSEMKT:VHC) a patent related to the creation of an "encrypted communications channel" between two devices using secure domain names. (USPTO filing)
    • The patent is the tenth granted to VirnetX in 2014, and is tied to the company's Gabriel secure connection platform.
    • Shares have risen 27% from a Sep. 18 low of $4.18. They remain down 64% from where they closed the day before last week's Apple appeals court ruling.
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  • Sep. 18, 2014, 12:45 PM
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  • Sep. 18, 2014, 12:03 PM
    • VirnetX (VHC -39.5%) is now down 70% from Monday's close in response to a federal appeals court's ruling on its infringement suit against Apple. Shares are at levels last seen in early 2010.
    • Yesterday afternoon, SA author Alpha Exposure argued VirnetX shares are "nearly worthless" following the appeals court ruling, due to the reversal of infringement rulings for two key patent claims and ongoing cash burn.
    • AE estimates VirnetX would obtain $38.5M/year in revenue if it collected a 1% royalty on Apple's FaceTime and VPN On Demand offerings, and $8.7M/year if it collected on FaceTime alone. At the same time, the author thinks "VirnetX may find it hard to even achieve 1% since it has signed royalty deals at as low a rate as 0.24%."
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Company Description
VirnetX Holding Corp is an Internet security software and technology company with patented technology for secure communications. The Company's software and technology solutions, include its Secure Domain Name Registry and GABRIEL Connection Technology.