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Apple loses patent dispute with VirnetX, must pay $368M

updated 06:41 am EST, Wed November 7, 2012

Apple suffers $348 million court room loss to VirnetX in Texas court

Apple has lost a patent dispute with patent troll VirnetX and has been order to pay $368 million in damages, reports AllThingsD. The case stems back to April last year when VirtnetX accused Apple of infringing its US Patent No. 8,05,181 for a "Method for Establishing Secure Communication Link between computers of Virtual Private Network." VirtnetX has also filed a similar complaint with the ITC arguing that Apple's iPhone, iPad and Mac lines also violate its patents.

VirtnetX had already won a similar case against Microsoft and was able to successfully reach a $200 million settlement with the Redmond-based software and hardware giant. In addition to Apple and Microsoft, VirtnetX is also targetting Cisco, Avaya and Siemes with those cases set to go to trial in March next year.

Apple opted not to offer a comment on the ruling, however it is anticipated that it will initiate and appeal against the decision. A visit to the VirtnetX website has not yielded an official statement from the company at the time of writing. The company claims that is an Internet security software and technology company with patented technologies including 4G LTE security.

By Electronista Staff
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  1. Peter Bonte

    Fresh-Faced Recruit

    Joined: 08-27-01

    Almost half of what Samsung has to pay to Apple for a much bigger infringement, just crazy.

  1. prl99

    Mac Enthusiast

    Joined: 03-24-09

    I glanced at the patent application and they start by saying, "A tremendous variety of methods have been proposed and implemented to provide security and anonymity for communications over the Internet. The variety stems, in part, from the different needs of different Internet users." They also list a whole lot of patent references. This is about a VPN connection through a server, which really surprises me that the USPTO actually gave this patent to the original patent submitters from SAIC (VirtnetX is a patent holding company, nothing else) in 2011 after they submitted it in 2007 when Cisco has been doing exactly this for many years previous to the filing. In many ways, Apple is simply using Cisco's VPN software anyway and I'm sure Cisco has prior art on this patent so I'm really confused how these guys even got a patent when so many other patents had been awards doing basically everything contained in their patent.

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