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VirnetX Holding Corporation (VHC)

  • 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%."
  • Sep. 18, 2014, 9:06 AM
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  • Sep. 17, 2014, 5:37 PM
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  • Sep. 16, 2014, 3:14 PM
    • "We are bolstered by the fact that the patents were again found valid and that it was confirmed that Apple's VPN on Demand functionality infringes the VirnetX (VHC -41.7%) patents," says CEO Kendall Larsen. "We look forward to readdressing the FaceTime infringement and damages issues as soon as possible."
    • Source: Press Release
    • Previously: VirnetX plunges as jury award over Apple is vacated
  • Sep. 16, 2014, 12:46 PM
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  • Sep. 16, 2014, 11:37 AM
    • Affirming part of a lower court ruling in favor of VirnetX's (VHC -46.4%) patent claims against Apple, a federal appeals court reverses the decision on two of the claims and vacates the jury's award of $368M in damages, returning the case to the lower court for further proceedings.
  • Sep. 10, 2014, 2:38 PM
    • A federal judge has denied Microsoft's (MSFT -0.1%) motion to stay a patent suit filed by VirnetX (VHC +7.1%), and ordered the two to make a good faith effort to narrow the claims.
    | 1 Comment
  • Aug. 11, 2014, 12:31 PM
    • In a Markman order, the Eastern Texas district court has rejected an Apple motion for summary judgment seeking to invalidate certain VirnetX (VHC +3.6%) patent claims on grounds of indefiniteness.
    • It has also "granted in part and denied in part VirnetX's Motion for Partial Summary Judgment on Apple's Invalidity Counterclaims." Apple is precluded from asserting invalidity for VirnetX patent claims covered during the companies' jury trial, but can do so for other claims.
    • VirnetX rallied in June after an RPX request (on behalf of Apple) for a USPTO review of several VirnetX patents was denied.
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  • Aug. 4, 2014, 12:58 PM
    • The USPTO has granted two Microsoft petitions for inter partes review (IPR) of claims in VirnetX's (VHC +3.6%) '274 patent (USPTO filing). The patent is 1 of 6 asserted by VirnetX in an infringement suit filed against Microsoft last year.
    • The decision comes shortly after the USPTO denied Microsoft IPR petitions for VirnetX's '135 and '180 patents. Microsoft was found to infringe those patents in a prior suit.
  • Jun. 19, 2014, 1:15 PM
    • In a closely-watched case, the Supreme Court has upheld the patentability of software concepts, albeit while setting limits: Companies can't patent a mere abstract idea on a computer, but can patent software ideas that advance or improve upon existing ideas.
    • The ruling comes a month after Sen. Pat Leahy shelved a hotly-contested bill aimed at limiting the power of patent trolls. Many tech giants and startups backed the bill, while IP licensing firms staunchly opposed it.
    • A few licensing firms are trading lower on a moderately down day for tech: VRNG -2.2%. ACTG -1.3%. VHC -2.8%. PRKR -3.8%. SPEX -3.1%.
    • Other related names: RPXC, WILN, DSS, CRDS, MARA.
  • Jun. 5, 2014, 4:18 PM
    • An RPX request (on behalf of client Apple) for a USPTO review for several VirnetX (VHC +6.8%) patents has been denied. (h/t Tom Shaughnessy)
    • The USPTO calls RPX's petitions "time-barred," given they were filed more than a year after Apple (deemed the "real party" in the dispute) was served with an infringement complaint.
    • In March, VirnetX was assigned a 0.98% royalty rate on certain Apple products by an Eastern Texas district court; Apple, not surprisingly, has appealed the verdict. VirnetX shares initially shot higher on the ruling, but gradually gave back their gains.
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  • May. 23, 2014, 4:33 PM
    • SA author Tom Shaughnessy, who attended VirnetX's (VHC +6.8%) annual meeting, likes what he heard during a presentation by CTO Robert Short about the company's Gabriel secure connection tech.
    • Shaughnessy notes Gabriel has "ballooned into a full suite of products encompassing chat, web, share, video, voice, mail and sync capabilities," and sees plenty of potential business/consumer use cases.
    • He also notes VirnetX is trying to end the use of "reverse conversions and naked shorting using the market maker's exemption" by traders by tracking the activity and reporting it to compliance departments. 40% of the float was shorted as of April 30.
  • Apr. 28, 2014, 9:15 AM
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  • Apr. 25, 2014, 6:55 PM
    • Down over 7% much of the day, VirnetX (VHC) erased its losses on heavy volume in the last hour to finish up 9.3%.
    • Chatter points to an Apple/Motorola ruling issued today in the Court of Appeals for the Federal Circuit that alludes to issues between VirnetX and Apple.
    • Supporters believe the language bolsters VHC expert testimony in that company's dispute with Apple.
    • After hours, VHC up another 3.3% to $16.55.
    • Previously: VirnetX/Apple: What Does Apple Owe?
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  • Mar. 28, 2014, 5:21 PM
    • VirnetX (VHC +4.3%) has been granted four new Internet security-related Japanese patents.
    • The company has also "received a notice of allowance in Canada, two additional notices of allowance in Japan, and six notices of allowance in the United States," which the company expects will yield several new patents. VirnetX notes it has been granted 75+ Internet security-related patents since '06.
    • Shares recouped a sliver of the losses they've seen this month following the publishing of a royalty order in VirnetX's patent suit against Apple.
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  • Mar. 6, 2014, 4:00 PM
    • The court order, whose publication comes three days after VirnetX (VHC -4.8%) disclosed the order in a short 8-K, states a 0.98% royalty rate should "apply to adjudicated products and products not colorably different from those adjudicated at trial, including but not limited to the iPhone 5, iPod Touch 5th Generation, iPad 4th Generation, and the iPad Mini."
    • It also notes Apple urged the court to apply a lower royalty rate, arguing "it has successfully implemented a non-infringing FaceTime feature and it is currently working on a design-around for [its] VPN On Demand feature."
    • Given its history, there's a good chance Apple will appeal the ruling.
    • VirnetX says it's "very pleased" with the order. Shares are now up only 3% from where they traded prior to the Monday disclosure.
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Company Description
VirnetX Holding Corp develops software and technology solutions for securing real-time communications over the Internet. The Company currently own 20 patents in the United States and 32 foreign patents.