VirnetX Reversal Won By Apple After 10 Long Years

Once the US Patent Trial and Appeal Board invalidated the virtual private network (VPN) patents that VirnetX claimed Apple had violated, the US Court of Appeals for the Federal Circuit ruled that the judgment could not stand. In a long-running dispute over internet privacy technologies, Apple Inc. on Friday persuaded a U.S. appeals court to overturn a $502 million judgment for patent licensing business VirnetX Inc. The judgment follows the Federal Circuit’s Thursday decision to uphold a tribunal’s determination of invalidity for the patents at the U.S. Patent and Trademark Office.

VirnetX Verdict Reversed

The two businesses have engaged in a 13-year legal dispute on its patents, which has involved several trials and appeals. In 2020, an East Texas jury determined that Apple had violated the patents at issue in the Federal Circuit litigation and had awarded VirnetX $502 million as compensation.

In a different case, VirnetX triumphed against Apple in East Texas in 2016 with a decision of $302 million, which was later enhanced to $440 million. The case involved claims that the tech giant had incorporated its internet-security technology into services like FaceTime video conversations. In a thirteen-year-old, $503 million patent dispute with the Nevada-based security software and technology company VirnetX, an appeals court affirmed Apple’s victory on Thursday.

After a lift from the company’s earlier-in-the-day announcement that it will pay shareholders a special cash dividend of $1 per common share, VirtnetX shares dropped 14%.

“For stockholders with records as of April 10, 2023, the dividend will be paid on or around April 17, 2023. The total cash distribution associated with this special dividend will be in the neighborhood of $71.4 million “Before the verdict was made public, VirnetX stated.

It promised to provide shareholders with a sizable amount of the settlement money at the time, expressing confidence in the Apple lawsuit is a speedy resolution.

The offer is still valid, according to VirnetX, even though the results were not what it had anticipated.