Market Overview

VirnetX Wants Half-Billion From Apple: Here's Why

VirnetX Wants Half-Billion From Apple: Here's Why

A VirnetX Holding Corporation (NYSE: VHC) lawyer told the federal jury Monday that Apple Inc. (NASDAQ: AAPL) owes $532 million for using the company's patented technology for secure communications.

"Apple hasn't played fair. They have taken VirnetX's intellectual property without permission," stated Brad Caldwell of Caldwell Cassady, a VirnetX lawyer.


The half-billion amount wanted by VirnetX is a retrial on some infringement issues.

Previously, the company won over a $368.2 million verdict against the tech giant. The appeals court then discarded this award for damages, and has summoned a new trial for the infringement claims.

Related Link: Apple-Tesla: A Timeline

"Apple believes in fairness and protecting intellectual property," Apple's lawyer, Greg Arovas of Kirkland & Ellis said. "VirnetX keeps moving the boundary, asking for more and more and more."

As the iPhone maker faces another patent troll case, the VirnetX Inc. v. Apple Inc., 12cv855, U.S. District Court for the Eastern District of Texas (Tyler) case is now scheduled to last until next week; it will look at Apple's use of technologies through its iMessage system FaceTime and its new operating systems.

VirnetX revenues are derived from patent licensing, and operates in Zephyr Cove, Nevada, with 14 employees. The company also had a previous patent lawsuit against Microsoft Corporation (NASDAQ: MSFT)'s Skype service, winning a $200 million in settlement.

Image Credit: Public Domain


Related Articles (AAPL + MSFT)

View Comments and Join the Discussion!

Posted-In: Brad Caldwell Caldwell Cassady FaceTime Greg Arovas iMessage SystemNews Tech Trading Ideas