Patent dispute: Apple to pay $503 million in royalties

Patent dispute: Apple to pay $503 million in royalties

For 10 years Apple has been in court with VirnetX over several patents. In the current case, the jury at the court in Tyler, Texas, has now decided that Apple should pay damages in the amount of $502.8 million.

Some of you may remember the beginning of the patent dispute in 2010. Among other things, the dispute concerned patents used in Apple's FaceTime. The current decision in the dispute between VirnetX and Apple was about the amount of royalties due to the patent infringement for a VPN patent; specifically, it was about VPN on Demand.

VirnetX claimed that Apple owed the company more than 700 million US dollars. Apple's own bill came to only $113 million, or 19 cents per device. The jury chose a middle course and decided on 84 cents per device.

At the end of the fine, this corresponds to $502.8 million based on 598,629,580 devices sold in the U.S. since 2013 and the launch of iOS 7.

Dispute with VirnetX: Apple plans to appeal

While the CEO and president of VirnetX said in a press release that he was "very pleased" with the jury's decision, Apple, as expected, sees things differently.

As Bloomberg reports, a spokesman for the iPhone manufacturer thanked the jury, but at the same time said that they were disappointed with the decision. They are already planning to appeal.

Apple already had to transfer $454 million to the company in March 2020. Here, too, patent infringements were involved.

VirnetX earns primarily from royalties on its patents. For example, in 2010 – before the disputes with Apple – it was possible to obtain a transfer from Microsoft in the amount of $200 million. According to Bloomberg, the company's own software offering has so far been able to find only a few users.

Source: Bloomberg, VirnetX

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