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Court Order Awarding VirnetX .98% On-going Royalty On Accused Apple Products Publicly Issued

Stocks in this article: VHC




            VIRNETX INC.





                                                                    CASE NO. 6:13-CV-211



     Before the Court is VirnetX Inc.'s ("VirnetX") Motion for an Ongoing Royalty (Docket

No. 10). For the reasons stated below, the Court GRANTS IN PART and DENIES IN PART

VirnetX's Motion. Apple Inc. ("Apple") is ORDERED to pay VirnetX an ongoing royalty rate

of 0.98% on adjudicated products and products not colorably different from those adjudicated at

trial that incorporate any of the FaceTime or VPN On Demand features found to infringe at trial.


     On August 11, 2010, VirnetX filed suit alleging that Apple and several other defendants

infringed U.S. Patent Nos. 6,502,135 ("the '135 Patent"), 7,418,504 ("the '504 Patent),

7,490,151 ("the '151 Patent), and 7,921,211 ("the '211 Patent) (collectively, "the patents-insuit").

See VirnetX, Inc. v. Cisco Systems, Inc. et al., No. 6:10–cv–417, Docket No. 1 (" Apple

I"). The '135 and '151 Patents generally describe a method for transparently creating a virtual

private network ("VPN") between a client computer and a target computer, while the '504 and

'211 Patents disclose a secure domain name service.

Specifically, VirnetX accused Apple's VPN On Demand and FaceTime of infringement.

Both features establish secure communications, with Apple's FaceTime providing a secure

communication link for users when video-chatting. Apple's VPN On Demand seamlessly

creates a VPN when a user requests access to a secure website or server.

     A jury trial regarding the instant suit commenced on October 31, 2012. At trial, VirnetX

contended that Apple infringed claims 1, 3, 7, 8 of the '135 Patent; claims 1 and 13 of the '151 Patent;

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