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August 7, 2013

VirnetX Adds New Patent Complaint to Apple Lawsuit

VirnetX Holding Corp. is continuing its campaign against Apple, adding a new patent infringement complaint to its current lawsuit against the iPhone maker.

VirnetX made the announcement today after the U.S. Patent and Trademark Office awarded the Internet security software firm two new patents covering security technologies.

With the new patents under its belt, the company filed papers with the U.S. District Court for the Eastern District of Texas stating a number of Apple products — the iPhone 5, iPod Touch 5th Generation, iPad 4th Generation, iPad mini, and the latest Macintosh computers — violate one of the new patents.

These products were not included in a previous lawsuit due to their release dates.

The company filed suit against Apple last November after winning a $368-million patent verdict over the iPhone maker last fall. The complaint includes allegations of deliberate patent violation of four patents owned by VirnetX, a press release states. The new addition brings the total to five.

“We are very pleased to add these new patents to our patent portfolio,” said VirnetX CEO and president Kendall Larsen in a press release. “Our patent portfolio consists of quality, essential patents and we believe these new patents will strengthen our ongoing licensing efforts to the mobile markets.”

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

Apple was ordered by a federal jury last fall to pay $368.2 million to VirnetX for violating its virtual-private-network technology patents.

Although VirnetX, which won $200 million from Microsoft in a similar 2010 patent lawsuit, was asking Apple pay $708 million in damages, a Texas jury awarded the company a little more than half that amount.

VirnetX’s complaint claimed Apple’s iPhone, iPod Touch, iPad and Mac computers all use the FaceTime function for which it holds the patent. Apple has said it did not breach the patent and argues they are not valid.

The United States District Court for the Eastern District of Texas denied Apple’s request to reduce the $368.2 million in patent infringement damages in February. It also denied Apple’s motion for a new trial on the liability and damages portions of the verdict.

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 the lawsuit.

Apple has since appealed to the Court of Appeals for the Federal Circuit.

“We expected Apple to appeal,” Larsen said. “We are glad that this process is finally underway.  We are optimistic and confident that VirnetX will prevail on appeal.”

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