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February 28, 2013

Court Denies Apple’s Request for Reduced Damages in VirnetX Patent Suit

Companies Ordered to Negotiate License Within 45 Days

A federal court has denied Apple’s request to reduce the $368.2 million in patent infringement damages awarded by a jury last November to VirnetX Holding Corporation.

The United States District Court for the Eastern District of Texas also denied Apple’s motion for a new trial on the liability and damages portions of the verdict, the Internet security software and technology firm announced on its website. 

The court also granted VirnetX’s motions for pre-judgment interest, post-judgment interest, and post-verdict damages to date. Apple must pay $33,561 in daily interest up to final judgment and $330,201 in daily damages for infringement up to final judgment for certain Apple devices included in the Verdict.

It didn’t all go VirentX’s way, however. The court denied the firm’s request for a permanent injunction against the products mentioned in its lawsuit — Apple’s iPhone, iPod Touch, iPad and Mac computers — and ordered the companies to negotiate a license in the next 45 days. If the parties fail to agree to a license, VirnetX is to file the appropriate motion with the court.

“We are extremely pleased with the court’s order in our suit against Apple,” said VirnetX CEO and president Kendall Larsen. “We look forward to negotiating a license with Apple that includes an ongoing royalty agreement.”

VirnetX, in the statement on its website, said it intends to withdraw its complaint filed with the United States International Trade Commission (ITC) against Apple “and pursue comprehensive relief from Apple’s infringement through the district court system.”

The original lawsuit claimed Apple’s iPhone, iPod Touch, iPad and Mac computers all use the FaceTime function for which VirnetX holds the patent. Although the lawsuit requested Apple pay $708 million in damages, the jury awarded the company a little more than half that amount.

VirnetX launched a second lawsuit against Apple the week after winning its $368.2-million patent verdict.

The complaint includes allegations of willful patent infringement regarding four patents owned by VirnetX, U.S. The new suit claims the iPhone 5, iPod Touch 5th Generation, iPad 4th Generation, iPad mini, and the latest Macintosh computers, violate these patents, according to court documents. These products were not included in the previous lawsuit due to their release dates.

A press release by VirnetX indicates it is seeking both damages and injunctive relief.

 

3 Responses to “Court Denies Apple’s Request for Reduced Damages in VirnetX Patent Suit

    And the things which is the best talked in the town is also the best process man.

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