The court ordered Apple to pay $ 368.2 million to VirnetX
A Texas court ordered Apple to pay VirnetX $ 368 million for patent infringement related to VPN technology (virtual private network).
VirnetX has 45 patents related to real-time data transmission and encryption. According to the plaintiff, Facetime uses a DNS service similar to that described in the patent. It seems that they managed to convince the court of their innocence and now Apple has to make a difficult choice - refuse video chat or agree on license fees.
In addition, VirnetX demanded to ban the import of iPhone, iPad and Mac computers. If Apple by the middle of next year does not agree on the size of royalties, then this requirement can be satisfied.
Representatives of the defendant believe that Apple owes VirnetX nothing. And they also said that if some technologies are involved, then in an extremely limited amount.
In addition to Apple, Cisco Systems, Avaya and Siemens Enterprise Communications were targeted by VirnetX lawyers. These companies are charged with similar violations. The amount of claims against them is estimated at $ 700 million, and hearings on these cases will be held at the beginning of next year.
For VirnetX it is not the first time to win in such matters. Let me remind you that in 2010 Microsoft was also obliged to pay $ 106 million for violating the VPN patent.
VirnetX was founded by former employees of SAIC Inc., which created VPN technology for the needs of the US CIA with the money of American taxpayers. She inherited and received the indicated patents from this company.
Apple lawyers do not agree with the verdict and are preparing to appeal. However, due to negative news, the shares of the American IT industry giant have fallen in price. According to the data of exchange experts, since September 19 this year Apple's market capitalization fell by almost 20% and dropped to a half-year low. The shares of VirnetX , for obvious reason, have recently been growing in price and over the past couple of years have risen from $ 7.71 to $ 34. Moreover, the news of a successful trial led to an increase of almost 28%.
The intellectual property protection system, as it is now, protects the rights of “patent trolls” rather than companies engaged in real production. So, in 2011, the US Congress, together with the Patent Office, prepared a report on lawsuits in this area, which states that in 2010, about 40% of cases were brought by organizations that are not involved in anything other than litigation. Whereas 5 years ago they accounted for no more than 22%.
This trend cannot but alarm, and suggests that patent law urgently needs to be reformed, and with it in the most dramatic way, otherwise the consequences could be negative themselves.
UPD List of patent infringements: 6,502,135 , 7,418,504 ,7,921,211 and 7,490,151 .
VirnetX has 45 patents related to real-time data transmission and encryption. According to the plaintiff, Facetime uses a DNS service similar to that described in the patent. It seems that they managed to convince the court of their innocence and now Apple has to make a difficult choice - refuse video chat or agree on license fees.
In addition, VirnetX demanded to ban the import of iPhone, iPad and Mac computers. If Apple by the middle of next year does not agree on the size of royalties, then this requirement can be satisfied.
Representatives of the defendant believe that Apple owes VirnetX nothing. And they also said that if some technologies are involved, then in an extremely limited amount.
In addition to Apple, Cisco Systems, Avaya and Siemens Enterprise Communications were targeted by VirnetX lawyers. These companies are charged with similar violations. The amount of claims against them is estimated at $ 700 million, and hearings on these cases will be held at the beginning of next year.
For VirnetX it is not the first time to win in such matters. Let me remind you that in 2010 Microsoft was also obliged to pay $ 106 million for violating the VPN patent.
VirnetX was founded by former employees of SAIC Inc., which created VPN technology for the needs of the US CIA with the money of American taxpayers. She inherited and received the indicated patents from this company.
Apple lawyers do not agree with the verdict and are preparing to appeal. However, due to negative news, the shares of the American IT industry giant have fallen in price. According to the data of exchange experts, since September 19 this year Apple's market capitalization fell by almost 20% and dropped to a half-year low. The shares of VirnetX , for obvious reason, have recently been growing in price and over the past couple of years have risen from $ 7.71 to $ 34. Moreover, the news of a successful trial led to an increase of almost 28%.
The intellectual property protection system, as it is now, protects the rights of “patent trolls” rather than companies engaged in real production. So, in 2011, the US Congress, together with the Patent Office, prepared a report on lawsuits in this area, which states that in 2010, about 40% of cases were brought by organizations that are not involved in anything other than litigation. Whereas 5 years ago they accounted for no more than 22%.
This trend cannot but alarm, and suggests that patent law urgently needs to be reformed, and with it in the most dramatic way, otherwise the consequences could be negative themselves.
UPD List of patent infringements: 6,502,135 , 7,418,504 ,7,921,211 and 7,490,151 .