Apple Loses Patent Battle Against VirnetX, Ordered to Pay $302.4 Million

By S. Rina, | October 02, 2016

Apple has been found guilty of violating VirnetX's patents.

Apple has been found guilty of violating VirnetX's patents.

Apple has been ordered to pay $302.4 million to VirnetX to compensate the company for infringing its patents. The technology giant was found to have violated VirnetX's patent with its FaceTime feature. The infringed patents are related to secure communications.

Apple has been found guilty of infringing upon two patents. The award also includes compensation for using VirnetX's  technology in Virtual Private Network on Demand (VOD). The case was first filed in 2010, and a court found that Apple's VOD had violated two patents. VirnetX was awarded $368.2 million, but the lawsuit was dismissed by the US Court of Appeals.

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At a second trial earlier this year, VirnetX was awarded $625.6 million. However, the compensation was overturned by a judge in July.

The case is now scheduled to be forwarded to the United States Court of Appeals for the Federal Circuit in Washington D.C. The court specializes in patent cases. It will scrutinize the case to settle whether Apple violated the patents or not, using two different standards. The first standard is the one used by the US Patent and Trademark office, while the other standard is employed by the District Court in Texas.

VirnetX is a communications technology company and is known for its penchant for filing patent infringement cases against big companies. The company earns its revenue by licensing various patents it holds. VirnetX had earlier filed the cases against Cisco and Microsoft as well. It won $23 million in compensation from Microsoft in 2014.

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