Apple ordered to pay $368 million to VirnetX Company

Posted on Nov 7 2012 - 5:22pm by Huzoor Bux

Texas court ordered Apple to pay a company VirnetX $ 368 million for violating patents related to the technology of VPN (virtual private network). Corporation verdict disagrees and is preparing to appeal.

Yes, VirnetX owns 45 patents related to the transmission and encryption of data in real time. According to the company, the plaintiff, was accepted by the court, the program used Facetime service DNS, similar to the ones described in the patent. Now Apple will have to give up video chats or to negotiate a licensing agreement.

“Apple does not owe VirnetX. This company can not get money for something that is not relevant. Its technology, if employed, in a very limited extent and in the much more complex products” – convinced representatives of Apple.

In addition, a VirnetX linked another case against Apple in Commission U.S. International Trade. It accuses the company Cisco Systems, Avaya and Siemens Enterprise Communications in similar violations and requires them to $ 700 million hearing in these cases will be held early next year.

Earlier, in 2010, Microsoft paid VirnetX $ 200 million fine and signed a license. NEC signed a similar agreement in August.

In October, the company turned to the International Trade Commission asking to ban the import of your iPhone, iPad and a Mac. If Apple until mid-2013 did not agree on the amount of royalties the request can be satisfied. The company bought the VirnetX patents listed in SAIC Inc, which created the VPN-technology to the needs of CIA money for U.S. taxpayers. The company VirnetX was created by former employees of SAIC.

Practice shows that the system of protection of intellectual property rights better protected “trolls” and not companies involved real production. Last year parliament with U.S. Patent Office prepared a report on the claims in this area. For example, last year 40% of cases were initiated by firms that are not engaged in anything other than chicanery, whereas five years ago they accounted for no more than 22% of trials.