VirnetX rallies following bullish SA column

|About: VirnetX Holding Corporation (VHC)|By:, SA News Editor

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.