Lower Court Sets Royalty Rates in Virnetx v. Apple as CAFC Hears Oral Argument in Case’s Appeal

  • March 13, 2014

Last week a judge in the Eastern District of Texas ordered Apple to pay VirnetX an ongoing royalty rate of 0.98% on products found to infringe VirnetX’s asserted patents in a 2012 trial. Also included are products “not colorably different from those adjudicated at trial that incorporate any of the FaceTime or VPN on Demand features found to infringe at trial.” The order stemmed from a 2010 lawsuit VirnetX filed against Apple, Aastra, Cisco, and NEC for alleged infringement of four patents related to VPN and network communications (6:10-cv-00417). Following a five-day trial in November 2012 a jury found that Apple infringed the asserted claims and awarded VirnetX $368 million in damages. The court also ordered Apple to pay pre- and post-judgment interest. District Judge Leonard Davis denied Apple’s post-trial motion for judgment as a matter of law and also denied a request by VirnetX for a permanent injunction. Post-trial motions filed by VirnetX led to severance of the 2010 matter into two separate cases: one to cover past damages, and the other to address future royalty rates.


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