Apple Plans to Appeal $439M 'Final Judgment' in FaceTime Patent Lawsuit With VirnetX

VirnetX today announced that the United States District Court for the Eastern District of Texas has denied all of Apple's motions in a longstanding FaceTime-related patent lawsuit between the two companies.

iPhone 4 FaceTime
The court also granted all of VirnetX's motions in the retrial and increased the royalty rates that Apple owes during the infringement period, resulting in a revised final judgment amount of $439.7 million.

"We are elated with the Court's Final Judgement of $439 million in that not only did it affirm the jury's verdict of $1.20 per infringing iPhone, iPad and Mac Product, but also added for willful infringement, interest and attorney fees. This is the third time a jury has ruled in our favor against Apple," said Kendall Larsen, VirnetX CEO.

VirnetX originally sued Apple in 2010 over allegations that FaceTime's peer-to-peer connection technology infringed upon its patents. VirnetX won its case in 2012, and Apple was hit with a $368.2 million judgment, but the appeals and retrial process has dragged on for over seven years until now.

Of note, the United States District Court for the Eastern District of Texas is a hotbed for patent infringement lawsuits given several favorable outcomes for patent holding entities like VirnetX. Some would even call the company a patent troll, although it does appear to offer at least one product of some kind.

A spokesperson for Apple confirmed that it plans to appeal this final judgment, according to TechCrunch. It noted that the motions can still be appealed even if the original case was already appealed and lost.

Popular Stories

iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Launching Later This Year With These 10 New Features

Sunday March 23, 2025 10:00 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of March 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
macbook pro blue green

When Will Apple Release the M5 MacBook Pro?

Wednesday March 26, 2025 4:53 pm PDT by
Apple regularly refreshes the MacBook Pro models, and a new version that uses M5 series chips is in the works. Apple just finished refreshing most of the Mac lineup with M4 chips, and now it's time for the M5. Rumors suggest that we could see the first M5 MacBook Pro models this fall. Design There have been no rumors of a design update for the M5 MacBook Pro models that are coming this...
Apple Lumon Terminal Pro

Apple's Mac Site Features Fictional 'Lumon Terminal Pro'

Wednesday March 26, 2025 12:19 pm PDT by
Apple is going all out with promotions for the popular Severance Apple TV+ show today, and as of right now, you'll find a new "Lumon Terminal Pro" listed on Apple's Mac site. The Lumon Terminal Pro is designed to look similar to the machines that Severance employees like Mark S. and Helly R. use for macrodata refinement. The Terminal features a blue keyboard, a small display with wide...
Facebook Feature

Facebook's New iPhone App Feature Turns the Clock Back to 2007

Thursday March 27, 2025 1:59 pm PDT by
In the mid-to-late 2000s, Facebook was all about staying connected with friends and family. However, as the social media platform added new features and grew over time, that core experience began to get drowned out. That changes starting now, according to Meta, which today introduced a new feature that will "bring back the joy" of classic Facebook. Specifically, Meta has redesigned the...
Generic iOS 18

iOS 18.4 Coming Soon With These New Features for Your iPhone

Tuesday March 25, 2025 6:45 am PDT by
Apple is expected to release iOS 18.4 to the general public as soon as next week, following more than a month of beta testing. Apple's website says some iOS 18.4 features will be released in "early April," so the update should be out as early as Tuesday, April 1. Apple this week seeded the iOS 18.4 Release Candidate, which is typically the final beta version, barring the discovery of any...
iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Supports 8K Video Recording, Suggests Leaker [Updated]

Wednesday March 26, 2025 4:06 am PDT by
Update 7:25 pm: Based on comments from our forums, it appears the original Weibo post may have been mistranslated and "8K" actually refers to the high price of the device rather than 8K video recording capabilities. The iPhone 16 Pro currently starts at 7,999 yuan in China. Our original article follows below. Apple's forthcoming iPhone 17 Pro models are capable of shooting 8K video, up...
Foldable iPhone 2023 Feature 1

'iPhone Fold' to Feature Metallic Glass Hinge That Resists Deformation

Thursday March 27, 2025 4:21 am PDT by
Last week, we covered a report claiming that Apple's book-style foldable iPhone (or "iPhone Fold," as we are provisionally calling it here) will use liquid metal hinges to improve durability and help minimize screen creasing. Today, a Chinese leaker provided more details on the properties of this hinge material that help to clarify why Apple chose it for its first foldable device. According...
Generic iOS 19 Feature Mock

Gurman: Jon Prosser's iOS 19 Mockups 'Aren't Representative' of Redesign

Tuesday March 25, 2025 4:47 pm PDT by
The iOS 19 mockup images that leaker Jon Prosser shared today are not representative of the actual iOS 19 design, Bloomberg's Mark Gurman said on social media. According to Gurman, the images that are "floating around" are based on "very old builds" or "vague descriptions," and are lacking key features. Gurman says that we can "expect more from Apple in June." Gurman made the same comment ...
iCloud General Feature Redux

iPhone Users Who Pay for iCloud Storage Receive a New Perk

Thursday March 20, 2025 12:01 am PDT by
If you pay for iCloud storage on your iPhone, Apple has a new perk for you, at no additional cost. The new perk is the ability to create invitations in the Apple Invites app for the iPhone, which launched in the App Store last month. In the Apple Invites app, iCloud+ subscribers can create invitations for any occasion, such as birthday parties, graduations, baby showers, and more. Anyone ...

Top Rated Comments

gaximus Avatar
97 months ago
Whats the point of a "Final Judgment" if you can appeal it?
Score: 19 Votes (Like | Disagree)
WatchFromAfar Avatar
97 months ago
So iphone 8 sales were lacklustre, the 10th anniversary Event at Steve Jobs's theatre went down like a damp squid, and only 46,500 iphone Xs ready at launch day.
and they've 'lost' Facetime case.
Nice.
It's "a damp squib" meaning an explosive that has gotten damp so it can't go off. Still you made me laugh :)
Score: 12 Votes (Like | Disagree)
thisisnotmyname Avatar
97 months ago
smh just pay it the company has $200 billion in the bank
I'd like $100 from you. Just pay it to me, you have the money in the bank. If you'd like I can file a small claim and receive a default judgement so we can continue this analogy.
Score: 11 Votes (Like | Disagree)
Sasparilla Avatar
97 months ago
I remember these guys:

http://anewdomain.net/who-is-virnetx-apple-must-pay-300m-plus-breaking/

Their founding owners were directly related to the U.S. national security establishment - and forced Apple to abandon encrypted phone to phone connections (no middle server)...Apple had to go to server pass through at the time. VirnetX had a patent on the direct client to client technology and wouldn't license it to Apple - not because it wasn't enough money, just wouldn't license it. Not sure where things stand now. But they weren't the only faux patent company the NSA etc. directly controlled and probably still control....
Score: 9 Votes (Like | Disagree)
kdarling Avatar
97 months ago
Apple has a product, so it’s hardly patent trolling.
Actually, Apple has sued over patent claims it doesn't use itself.

Also, as previously noted, Apple was part of a consortium that created a notorious patent troll called Rockstar.

In any case, VirnetX is not what most people call a troll, since they invented what they license, and do have app and library products using their patents.

Also, the patent wasn’t and isn’t on a “rectangle with round corners”, that’s just **** someone made up on the internet.
On the contrary, Apple DID manage to get a design patent on a rounded rectangle. Here it is. (Dashed lines don't count.)



Apple awarded design patent for actual rounded rectangle - Ars Technica ('https://arstechnica.com/gadgets/2012/11/apple-awarded-design-patent-for-actual-rounded-rectangle/')

Apple did not try to sue Samsung using the more detailed actual iPad design patent. It wouldn't have worked, as none of Samsung's tablets had a round Home button or the same exact shape. So instead, Apple tried to use the above generic rounded rectangle patent.

The attempt failed. Along with courts all over the world, even the first set of California jurors decided that Samsung's tablets did not infringe it.

Attachment Image
Score: 6 Votes (Like | Disagree)
kdarling Avatar
97 months ago
The whole patent system needs to be overhauled. I'm not defending Apple if they did something wrong then they should pay up but small companies patent trolling big companies is not the way to run a business.
Normally a troll is defined as a company that buys up patents and then goes looking for offenders.

(Note: Apple did that themselves by proxy, when the consortium they belonged to bought Nortel patents and then created a patent holding company that did nothing but reverse engineer software to find infringements.)

VirnetX is different. Its officers are mostly the guys who actually invented what they license. Basically, they're living the American inventor's dream of coming up with something that lots of people will want to use and pay for. Nothing wrong with that whatsoever.

Worse, Apple's own internal documents showed that they knew they were infringing VirnetX patents, but went ahead anyway.

You are correct, the United States District Court for the Eastern District of Texas is notoriously known as the home of Patent Trolls..
Many plaintiffs like East Texas and Delaware courts because they are quick, have technical experience, and especially because they favor patent holders.

In a similar way, Apple prefers northern California courts which seem to favor home state companies.

Likewise, Motorola used to favor filing in their home state of Illinois.
Score: 6 Votes (Like | Disagree)