Apple loses out in patent dispute

Apple is no stranger to a multimillion dollar lawsuit, having been embroiled in its fair share over the years. This week Apple has been ordered to pay over $500 million to VirnetX. The order marks the end of a decade-long patent dispute.

VirnetX , the internet security software and technology company based in Nevada, sued Apple in 2010 accusing it of infringing its patents. VirnetX accused Apple of using its technology in its VPN on Demand and FaceTime apps. VirnetX has been labelled a “patent troll” by many commentators, often suing large technology companies for infringing its patents. VirnetX does not sell or market its own products but rather makes its revenue through licensing patents. The company owns crucial patents involved in internet security.

In the lawsuit, VirnetX sought more than $700 million in royalty payments. Apple countered that it only owed $113 million and that the royalty rate should be no more than 19 cents per unit. The Court in Texas settled on 84 cents per unit.

Apple has said in a statement that “This case has been going on for over a decade, with patents that are unrelated to the core operations of our products and have been found to be invalid by the patent office. Cases like this only serve to stifle innovation and harm consumers”. Apple plans on appealing.

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