Apple Loses Appeal in VirnetX Dispute, Could Owe Over $1.1 Billion

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Apple has not been successful in reducing the amount of money that it owes VirnetX in patent infringement fees, with the Cupertino company today losing an appeal that would have vacated or reduced a $502.8 million award.

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According to Reuters, a federal judge today denied Apple’s request for a new trial and claims that the award should not exceed $113.7 million.

Apple must pay the original $502.8 million that was awarded to VirnetX in October 2020, and combined with a prior $454 million award, the payments, future royalties, and interest could result in Apple paying VirnetX more than $1.1 billion.

Jurors in both of the lawsuits that VirnetX levied against Apple ruled in favor of VirnetX and said that Apple’s FaceTime, iMessage, and VPN on Demand features had infringed on VirnetX patents related to communications security.

Going forward, Apple will need to pay 84 cents per iPhone or iPad for future infringements, which is more than Apple wanted to pay. Apple claimed future royalties should be zero or no more than 19 cents per unit.

The legal battle between the two companies has spanned more than 10 years, having first kicked off in 2010.

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