VirnetX, an Internet security
software and technology company, was recently awarded $625.6 million in a
verdict against Apple for infringing on four patents. A US Court in Texas came
down with the ruling stating that Apple willfully infringed on VirnetX patents
in their VPN On-Demand, Imessage, and Facetime features. This case also has
legacy elements from a marathon case in 2012, in which VirnetX claims that
Apple infringed on patents with its Siri technology. Apple is one of the most
sued company’s when it comes to Non-practicing entities (NPE). Basically, a
non-practicing entity is any company or firm who holds the patent on a
technology that they don’t even make. VirnetX only has 14 employees and only
makes one product, yet they have an extensive patent portfolio that includes 80
patents, making them a patent troll. VirnetX purchased the four patents in the
Apple lawsuit from the Science Applications International Corporation. VirnetX
has had past success in patent trolling, winning a 200 million dollar payout
from technology giant Microsoft.
A big point made in the Apple
vs. VirnetX lawsuit was that the patent infringement was willful. Apple knew
that they were infringing on VirnetX patents, but made no effort to pay
royalties or seek acceptable licensing. After the verdict, Apple filed court
papers asking US District Judge Robert Schroeder for mistrial, claiming that
VirnetX’s legal counsel misled and confused the jury during closing arguments.
This $625.6 million may seem small in the grand scheme of things, considering
that Apple’s cash pile reached $216 billion in January. However, Apple is
adamant about setting a precedent for patent trolls. Many large tech companies
are screaming for patent reform, so that patent trolls like VirnetX can’t make
money off suspect lawsuits.
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