Judge Orders Apple to Pay $440M to VirnetX for FaceTime Patents

Apple must shell out $439.7 million in damages to VirnetX after the United States District Court for the Eastern District of Texas denied the iPhone maker’s motions to dismiss or at least lessen the required payment.

Instead, the court tacked $140 million on the original $302.4 million in damages awarded to VirnetX by a federal jury and granted each of VirnetX’s motions.

The $439.7 million in damages is to compensate VirnetX for the infringement of two patents related to Apple’s FaceTime videoconferencing app.

“We are elated with the Court’s final judgement of $439 million in that not only did it affirm the jury’s verdict of $1.20 per infringing iPhone, iPad and Mac Product, but also added for willful infringement, interest and attorney fees. This is the third time a jury has ruled in our favor against Apple,” VirnetX CEO Kendall Larsen said in a statement.

“This final judgement amount is large because sales of Apple’s infringing products are large.  The cost of our security technology in infringing devices has been apportioned and is less than a quarter of one percent of the device’s cost. We believe this established per device rate for security is very reasonable and will greatly assist us with our domestic and global licensing efforts.”

Apple has been fighting VirnetX, labelled by many as a patent troll, for nearly eight years. A patent troll is a company that makes the majority of its money from suing other firms for patent infringement.

VirnetX, in years past, successfully sued Microsoft, winning a one-time payment of $200 million for use of its technology in the software firm’s products. But that didn’t stop VirnetX from again suing Microsoft, which agreed to pay an additional $23 million to expand its license and settle the dispute.

Other victims of VirnetX’s patent lawsuits include Cisco, Avaya and Siemens.

VirnetX was not successful in its bid to get damages out of Cisco but both Siemens and Avaya did agree to make multiple payments to VirnetX to license certain patents as well as make ongoing royalty payments for future sales until the expiration of the licensed patents.

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Jennifer Cowan

Jennifer Cowan is the Managing Editor for SiteProNews.