Apple Wins Appeals Battle in Ongoing Patent Infringement War With VirnetX, Could Save $502.8 Million

Apple has been embroiled in a patent dispute with VirnetX for well over a decade, and the company today won an appeals verdict that could ultimately save it from having to pay VirnetX $502.8 million in patent infringement fees.

The U.S. Court of Appeals for the Federal Circuit on Thursday confirmed a ruling by the U.S. Patent and Trademark Office invalidating a pair of patents that VirnetX used in its patent infringement lawsuit against Apple, according to Reuters.

Apple in 2020 was ordered to pay VirnetX $503 million for infringing on VPN patents owned by VirnetX with the iPhone's VPN on demand feature. The two patents that have been invalidated were involved in that lawsuit, and now Apple might get the entire judgment vacated.

Apple appealed the $502.8 million award verdict after it was rendered, with both Apple and VirnetX presenting arguments in the appeal back in September. VirnetX attorney Jeff Lamken said at the time that if the court ultimately sided with the USPTO and invalidated the patents in the patent validity case, VirnetX could "have a big problem." He said that he did not think VirnetX would have an "enforceable judgment" in that situation, so this is potentially a major win for Apple.

With the patents now invalidated, VirnetX and Apple will again meet in court over the initial appeals case that Apple filed to determine whether Apple will need to pay up, and it's looking like the $502.8 million verdict will be thrown out.

Regardless of how this case plays out, Apple was forced to pay VirnetX $440 million for violating VirnetX's communications security patents with the FaceTime and iMessage features.

VirnetX is largely viewed a patent holding company or "patent troll" that does not offer actual products or services. It generates revenue by litigating technology companies that infringe on its patents, though it does also market its "War Room" software for authenticated meetings.