Apple Ordered to Pay $625.6 Million in Patent Suit Vs VirnetX
February 03 2016 - 08:55PM
Dow Jones News
By Josh Beckerman
Apple Inc. was ordered to pay $625.6 million in a
patent-infringement suit filed by VirnetX Holding Corp. regarding
communications features on iPhones, iPads and other devices.
VirnetX alleged in 2010 that Apple's FaceTime and a feature
related to virtual private networks infringed the firm's
patents.
In 2014, a federal appeals court threw out a $368 million jury
award against Apple, ruling that the verdict was "tainted" by
erroneous jury instructions. The appeals court sided with VirnetX
on some issues.
VirnetX shares rose 30% in the regular session. In after-hours
trading, the stock surged 89% to $9.05.
Patent awards are frequently reduced by appeals courts.
The amount of the Texas jury's verdict was within a range that
VirnetX requested, according to Jason Cassady, one of VirnetX's
attorneys, who said the outcome was "well-deserved."
An Apple spokeswoman said the company is "surprised and
disappointed by the verdict" and will appeal. She said "cases like
this simply reinforce the desperate need for patent reform."
A VirnetX company spokesman didn't immediately respond to a
request for comment. The Zephyr Cove, Nev., company derives its
revenue from patent licensing.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
February 03, 2016 20:40 ET (01:40 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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