Apple Inc. has been asked to pay VirnetX Holding Corp. $ 502.8 million, the final jury verdict in a decade-long saga over secure communications patents.
Tyler’s jury delivered their verdict in about 90 minutes. It was asked to decide only how much Apple owes VirnetX in royalties for VPN on Demand, a feature that allows users to access virtual private networks. An appeals court had confirmed a statement of offense concerning the VPN on demand.
Companies have been involved in litigation for a decade. VirnetX, which said its inventions stemmed from technology developed for the U.S. Central Intelligence Agency, argued that Apple’s VPN on-demand and FaceTime features use its inventions.
VirnetX had told the jury that it was entitled to more than $ 700 million. Apple had countered that it owed around $ 113 million, saying the royalty rate should not exceed 19 cents per unit. The jury set 84 cents per unit.
Representatives for Apple and VirnetX did not immediately respond to requests for comment on the verdict.
Apple previously paid VirnetX $ 454 million due to a verdict on earlier versions of the features. Apple launched an aggressive campaign to invalidate VirnetX patents, but its victories in the US Patent and Trademark Office did not come in time to avoid its losses in district courts.
This trial involved a different case with newer versions of VPN On Demand. The lawsuit was required after an appeals court dismissed part of the infringement finding, saying the company redesigned its FaceTime feature to avoid VirnetX patents, resulting in the $ 503 million in damages- interest awarded in this case had to be recalculated.
VirnetX, which has not been able to gain traction with its own Gabriel software, relies on patent royalties for its revenue. Before Apple, its biggest payout came from a $ 200 million settlement with Microsoft Corp. in 2010.
As it seeks another big payout from Apple, the company is battling claims that CEO Kendall Larsen’s family represents one-fifth of the company’s 21 employees and the company is “in the throes of nepotism, wastefulness and failures of corporate governance, ”according to a lawsuit pending in Delaware Chancery Court.
VirnetX has asked for the Chancellery Court’s case to be dismissed, saying the “litany of blame” from the owner of five shares in the company is public information that does not involve any personal transaction.