Apple Inc. (NYSE:AAPL) Ordered To Pay VirnetX $503 Million For Infringing Its VPN Patents
Apple Inc. (NYSE:AAPL) has been ordered by a jury in Texas to pay around $503 million in royalties for VPN on demand to internet security software firm, VirnetX. The company has been fined for infringing VPN tech patented by VirnetX, allowing iOS devices to access secure VPN connection.
Apple has been in a legal battle with VirnetX for a decade
The companies have been embroiled in a legal battle for almost a decade with VirnetX stating that the use of VPN on Demand and FaceTime by Apple devices uses their technology. The jury decided that Apple should pay the firm a royalty of $0.84 per device. VirnetX had said that it is owed around $700 million in royalties claiming that the royalty rates should be more.
In a statement, Apple said that it is planning to appeal the verdict. The company said that the case has dragged over a decade for patents that are not associated with Apple products’ core operations. These patents have been found to be invalid by the patent office, and these kinds of cases are only there to stifle innovations.
Apple infringed internet-based communication patents
In February this year, the US Appeals court rejected Apple’s request to reconsider the decision that established that it had infringed VirnetX’s patents. There has been a back and forth, and in 2018 a federal court in Texas had ordered Apple to pay VirnetX $502.6 million for infringing four patents related to internet-based communication. This refers to the underlying tech behind Apple’s iMessage and FaceTime. Last year the Federal Circuit voided the jury verdict of $502.6 million but maintained findings of the Texas court that early iPhone models infringed two patents, thus setting the stage for another trial.
Following Apple’s request to the appellate panel to reconsider the verdict, the infringement was reduced to two patents. The company was recently ordered to pay VirtnetX around $450 million, including fees for previous versions of the supposedly infringing features. This $502.8 million will be an extra sum that Apple will pay VirnetX.