Apple Could Lose $1.1 Billion as it Fails to Overturn VirnetX Patent Infringement Case

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Apple could lose up to $1.1 billion as the decade-long battle between VirnetX and Apple nearly comes to end. The company has failed to overturn the VPN patent infringement case.

The VPN infringement patent battle has been going on between Apple and VirnetX for over a decade now. US District Judge Robert Schroeder has now denied Apple’s request for a new trial. Apple, now, must pay the original $502.8 million that was awarded to VirnetX in October 2020. This damage added to the previous $440 million could result in Apple paying VirnetX more than $1.1 billion.

Apple and VirnetX are involved in two separate patent battles. One is about the technology used in FaceTime, and iMessage and the other one is about the VPN on Demand feature. Apple will now have to pay 84 cents per iPhone and iPad for future infringements, which is more than Apple’s desired 19 cents.

Apple vs. VirnetX: The History

VirnetX had originally filed a lawsuit against Apple in 2010 for infringing upon secure communications-related patents without paying for them. In 2012, the Nevada-based firm was awarded $368 million in damages. These damages were, however, thrown out two years later after the Cupertino-headquartered company filed for an appeal.

In 2016, the IP firm was awarded $440 million after calculating damages, interest, and legal costs. The iPhone maker was also denied from turning aside the court’s ruling. The same year, VirnetX won another patent lawsuit against Apple, and the latter was ordered to pay $625.6 million for violating four patents. The iPhone maker had vowed to appeal against the ruling. However, it lost the appeal earlier in January this year to have the patent judgment set aside.

In April, VirnetX was awarded $502.6 million against Apple after a federal jury in Texas found Apple infringing upon the former company’s patents without paying for them.

We Want to Hear From You

What are your thoughts on the story? Do you think Apple will end up paying this hefty fee? Or do you think there’s something left in the story? Do let us know your thoughts in the comment section below!

[Via Reuters]