VirnetX Vs. Apple Trial: Verdict #3

Oct. 02, 2016 8:52 PM ETVirnetX Holding Corp (VHC)AAPL62 Comments
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IP Hawk


  • Results of the September 30, 2016 jury verdict.
  • Background information of the case versus Apple.
  • Opinions on the jury verdict and the next steps of the case.

VirnetX (NYSE:VHC), on Friday evening, received its jury verdict versus Apple (AAPL) in the amount of $302 million in the '417 action (2009-2012). The jury also decided that FaceTime infringes with the Federal Circuit changed claim construction of a key term in the '504 and '211 patents. Infringement of VPN on Demand was already affirmed by the CAFC. A hearing on willful infringement is scheduled for October 14th, and the post-trial briefing should be underway shortly.

This was the third jury verdict in favor of VirnetX versus Apple in the 6+ year long running battle. The first $368 million verdict was remanded on a claim construction and damage decision at the Federal Circuit in 2014, and the second verdict of $625 million was vacated by H. Judge Schroeder in late July 2016 due to "prejudicial" issues. The cases were split apart again in the July order after '417 and '855 (2013-present) actions, after HJS consolidated the cases in April 2015. The '855 action does not have a trial date set and includes infringement on redesigned versions of VPNoD/FaceTime, along with iMessage. The damages period will be 2013 through the trial date.

Why does VirnetX keep winning at the District Court? That's because the company has the facts on their side, and Apple is a corporate sewer. It wouldn't matter if this case was tried in the Northern District of California, and I believe Apple is lucky it's not being tried in that jurisdiction. The tech patent journalist community would be forced to attend the trial and hear what three jury panels have now heard and decided. Apple can't find two employees who have corroborating stories related to the case. The company's employees/experts also keep testifying under oath implausible stories, explanations, and timelines. Not to mention that Apple put in a non-infringing alternative, routing FaceTime calls through relay servers under a contract

This article was written by

IP Hawk profile picture
I am an active investor in IP-centric investments for 6 years. I specialize in high risk / high reward situations both public and private. It is important for investors to plan for all outcomes as the litigation surrounding the IP investment takes many twists and turns. Extracting profits and limiting exposure are the keys to success. I hope to provide information and strategies, which both expert and novice IP investors can profit from. Follow me on twitter for the latest updates in the IP space:

Disclosure: I am/we are long VHC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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