VirnetX patent win towards Apple vacated by U.S. appeals court docket


FILE PHOTO: The Apple brand is displayed at an occasion at their headquarters in Cupertino, California, U.S. September 10, 2019. Information/Stephen Lam/File Picture

(Information) – A U.S. appeals court docket on Friday voided a jury’s calculation that Apple Inc (AAPL.O) ought to pay $503 million for infringing patents owned by licensing agency VirnetX Holdings Corp , setting the stage for an additional potential trial in a decade-old authorized battle.

In a partial victory for VirnetX, the U.S. Courtroom of Appeals for the Federal Circuit left in place a Texas jury’s discovering that Apple iPhones infringed two VirnetX patents referring to safe communications know-how.

The court docket reversed the jury’s infringement discovering on two different patents, nonetheless. Based mostly on that ruling, the court docket despatched the case again to a Texas choose for additional proceedings.

The Texas choose should contemplate whether or not to carry a brand new damages-only trial or to recalculate damages with out holding one, the appeals court docket mentioned.

VirnetX’s inventory worth dropped greater than 50 p.c on the information earlier than recovering barely in later buying and selling.

Representatives of VirnetX and Apple didn’t instantly reply to requests for remark.

Zephyr Cove, Nevada-based VirnetX, which was based by staff at authorities contractor Science Functions Worldwide Corp, holds patents associated to safe networks, often known as digital personal networks, and safe communications hyperlinks.

VirnetX and Apple have been preventing over patents since 2010 in rollercoaster litigation that has triggered wild swings within the know-how licensing firm’s inventory worth.

The case at difficulty in Friday’s ruling, which went to trial in April 2018, is certainly one of a handful of lawsuits VirnetX has introduced towards Apple alleging unauthorized use of patented know-how.

Reporting by Jan Wolfe; modifying by Jonathan Oatis and Steve Orlofsky