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VirnetX Holding Corporation (VHC)

  • 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.
    | 1 Comment
  • 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.
  • Mar. 4, 2014, 9:10 AM
  • Mar. 3, 2014, 6:46 PM
    • Up over 30% at one point in response to its Apple royalty disclosure, VirnetX (VHC +5.9%) closed with more modest gains, as investors tried to decipher the precise implications of a very short 8-K. Shares are up 2.5% AH.
    • Markman Advisors declares it difficult to parse the 8-K until a full court order is published. The firm particularly thinks more detail is needed on VirnetX's remark that an 0.98% royalty rate applies to products not "colorably different" from those adjudicated at trial, along with the adjudicated products.
  • Mar. 3, 2014, 5:37 PM
    • Top gainers, as of 5:15 p.m.: VIPS +19.1%. GIB +5.5%. GWRE +4.4%. VHC +3.6%. TRQ +3.3%.
    • Top losers, as of 5:15 p.m.: MDR -9.5%. SNTA -7.0%. MCP -5.3%. MEET -4.9%. ASNA -4.2%.
    | 1 Comment
  • Mar. 3, 2014, 12:59 PM
    • The Eastern Texas district court handling VirnetX's (VHC +21.1%) patent suit against Apple has assigned VirnetX a 0.98% royalty rate on "adjudicated products and products not colorably different from those adjudicated at trial that incorporate any of the FaceTime or VPN on Demand features found to infringe at trial." (8-K)
    • An Eastern Texas jury awarded VirnetX $368M in damages in 2012. VirnetX announced a favorable USPTO ruling related to its Apple dispute last month.
  • Feb. 13, 2014, 10:18 AM
    • VirnetX (VHC +3.2%) states the USPTO has denied Apple's "motions for rehearing of the decisions not to institute seven of its requested inter partes [patent] reviews." In December, the USPTO had ruled Apple's petitions weren't filed in time.
    • A jury awarded VirnetX $368M in damages in 2012, after ruling Apple infringed the company's VPN IP. Apple has since appealed the verdict.
    | 1 Comment
  • Jan. 22, 2014, 12:40 PM
    • Patent plays VirnetX (VHC +1.4%), Unwired Planet (UPIP +3.1%) and Wi-LAN (WILN +2.2%) have moved higher after Vringo was awarded a favorable verdict in its long-running infringement suit against Google, AOL, and other firms. A proposed Google workaround for a Vringo patent the search giant has been ruled to be infringing was rejected.
    • The group has been pressured by growing political, legal, and regulatory scrutiny of perceived patent trolls.
  • Oct. 21, 2013, 2:10 PM
    • VirnetX (VHC +8.8%) is up strongly after SA contributor Tom Shaughnessy argues the company could receive a favorable judgment from an Eastern Texas district court on the royalty rate it's due from Apple for the use of its VPN IP. VirnetX scored a $368M jury verdict from the court in Nov. '12 for the past use of its IP.
    • Shaughnessy observes a VirnetX court filing indicates the company is seeking a 1.52% royalty on infringing Apple hardware, and that VirnetX's damages expert made a case for a 1% royalty.
    • He also notes the judge presiding over the case is set to rule on whether Apple's newer products are "colorably different" from the ones ruled by the jury to be infringing; if they aren't, then the royalty rate decided upon in the current trial can act as "a fundamental basis" for a second trial related to the newer products.
    • VirnetX is still down 28% YTD after crashing in March thanks to an adverse ruling in its legal battle with Cisco.
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  • Sep. 3, 2013, 12:05 PM
    • The USPTO has granted VirnetX (VHC +2.9%) 3 patents related to security features found in the 4G LTE-Advanced standard (beginning to be adopted by carriers). VirnetX calls the patents essential to LTE-Advanced, and has declared them as such to standards bodies. (PR)
    • If the patents are recognized as standards-essential, that should open the door for them to be licensed to 4G hardware vendors under FRAND terms.
    • Previous: Apple FaceTime workaround costs $2.4M/month
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  • Aug. 8, 2013, 10:49 AM
    • VirnetX (VHC +7%) is licensing some of its patents to Avaya in exchange for "multiple payments" and "an ongoing reasonable royalty for future sales," until the patents expire.
    • Avaya, in return, is licensing some of its patents to VirnetX for use in the development of its Gabriel cryptography tech.
    • VirnetX's Texas infringement suit against Avaya, a provider of networking gear and telecom hardware/software to enterprises, has been dismissed.
    • VirnetX recently announced it had been granted two more VPN-related patents by the USPTO, and that it has filed to assert one of them in its patent suit against Apple.
    | 1 Comment
  • Aug. 5, 2013, 1:01 PM
    • VirnetX (VHC -4.3%) has joined InterDigital and Acacia in trading lower after the Obama administration vetoed an ITC sales ban on older iPhones/iPads ruled to be infringing standards-essential Samsung IP.
    • The ruling has raised concerns about the ITC's effectiveness as a vehicle to pursue infringement complaints, particularly ones involving standards-essential patents.
    • VirnetX announced in February it would withdraw its ITC complaint against Apple, after obtaining a favorable Texas jury verdict.
    • In June, the White House announced executive actions and legislative proposals aimed at perceived patent trolls.
    | 1 Comment
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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.