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Apple To Appeal Five-Year-Long Patent Battle After $439.7 Million Loss (theverge.com)

Appel has been ordered to pay $439.7 million to the patent-holding firm VirnetX for infringing on four patented technologies that were apparently used in FaceTime and other iOS apps. According to The Verge, Apple plans to appeal the ruling -- continuing this long-running patent battle, which began back in 2012. From the report: VirnetX first filed suit against Apple in 2010, winning $368 million just two years later. It then sued again in 2012, which is the suit that's being ruled on today. Apple initially lost the suit, then filed for a mistrial. It won a new trial, lost that trial, was ordered to pay around $300 million, then lost some more and is now having that amount upped even further. That's because a judge found Apple guilty of willful infringement, bumping its payment amount from $1.20 per infringing Apple device to $1.80 per device. Those include certain iPhones, iPads, and Macs. VirnetX says the ruling is "very reasonable." Apple didn't issue a statement other than to say that it plans to appeal. While $440 million isn't a lot of money for Apple, there's principle at stake here: VirnetX is a patent troll that makes its money from licensing patents and suing other parties. The company's SEC filing states, "Our portfolio of intellectual property is the foundation of our business model."

13 of 69 comments (clear)

  1. Re:Patent troll by youngone · · Score: 2

    Indeed VirnetX would appear to be a patent troll, and will probably be first against a wall when the revolution comes, but it's a bit hard to have sympathy for Apple.
    Live by the sword is the phrase that comes to mind.

  2. Re:Patent troll by alvinrod · · Score: 2

    I'd go with "hate the game, not the player" as Apple, Google, Samsung, Microsoft, and plenty of other major companies get hit with these types of suits far more often than they go after other companies or each other. When there are plenty of other companies (legit or not) that have already picked up swords and are poking you with them, there's little incentive not you arm yourself in kind.

    The only thing that will fix it is patent reform, but that isn't something to stir up the base with so neither party really gives two fucks.

  3. Re:Put away the "patent troll" moniker already by GoRK · · Score: 3, Interesting

    You know I worked for a small regional computer manufacturer in the late 90's and we actually had to spar with the company who was infamously going around filing lawsuits alleging infringement because we sold computers that had blinking cursors. They had a legitimate patent for that.

    The problem is that everyone wants to argue the extremes and turn this into a binary problem when it is not. There are good and legitimate patents; there are some real suck-ass crap patents, and there is everything in between. Companies like Apple generally do not infringe on patents purposefully; they both pay for and receive tons of license fees under contracts that are overwhelmingly not the result of court cases. They aren't seeking to undermine the patent system or play a bunch of high stakes poker with patents. Software patents are too easy to work around.

  4. Re:Patent troll by msauve · · Score: 5, Interesting

    "Indeed VirnetX would appear to be a patent troll"

    No, absolutely not. Patent trolls don't go after multi-national corporations. They have weak or indefensible patents, and go after low-hanging fruit, trying to avoid court at all costs - they live on out-of-court settlements where the target figures paying is cheaper than fighting.

    Now, they may be a NPE (non-practicing entity), which doesn't make products which use their patents, but that's another thing entirely. Lots of universities fall in that category - they don't make products, but license patents they developed with research. Nothing unethical about it, they developed or bought reasonable, enforceable patents. Say some Joe Blow patented something unique - he doesn't have the resources to fight an infringer like Apple, so he sells the patent to someone who does. The system works like it should, assuming you think patents should exist at all.

    That the patent(s) in question here have held up across several cases shows they're not a patent troll.

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law
  5. Fighting a symptom by Ecuador · · Score: 2

    I generally applaud everyone that fights patent trolls, but Apple, one of the biggest players who could actually push and affect change in the ridiculous patent system, is really happy to get their own useless patents granted in an effort to strong-arm either small players or get necessary technology for free, so in my book they are not better than patent trolls.
    Yeah, the system is broken, but we are happy with it as long as we come ahead in the long run. And we'll fight some small patent trolls, a symptom of the system, along the way just to show form...

    --
    Violence is the last refuge of the incompetent. Polar Scope Align for iOS
  6. Re:Patent troll by youngone · · Score: 2
    I checked with Wikipedia and got this:

    Some call VirnetX a patent troll[1][2] because they expanded their Patent Portfolio beyond the original four Internet Security Patents to include more than 100 related patents, thus securing their position as a leader in mobile security technology, and based on the fact that the majority of their employees are lawyers and they have yet to commercialize any of their patents in commercial products.

    So I guess it depends on your definition of Troll really.
    I'm happy to call any company that produces nothing a patent troll, but in this case there might be a defense:

    Emails from Apple's engineering staff indicated that they knew they were violating various patents...

    Which fits your point well, and is also why I have no sympathy for Apple.

  7. Re:Patent troll by Austerity+Empowers · · Score: 2

    As an engineer, I am not aware of very many patents, and I intentionally keep my blinders on. However every once in a while a patent comes by that looks like "I patented downloading a file, anyone who downloads files owes me royalties". Often they get to us deliberately to ensure that we are crossing in to willful violation. And yup, I do willfully violate that kind of bullshit patent. Any reasonable person would.

    The lawyers have to earn their keep and deal with that. We can't have the state of all technology and progress get tied up in courts because of trolls. I'm with your original post, line em up against the wall, use incendiary rounds.

  8. Re:Patent troll by jedidiah · · Score: 2

    The relevant aspect of the troll metaphor is trying to charge people for something you don't own. A valid patent doesn't fall into that category. It doesn't matter if you are a "practicing entity" or not. It's pursuit of the bogus patents that make you a troll.

    It's abusing the "I can't believe they got that past the PTO" kind of shit that makes you a a troll.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  9. Oh no! by Gravis+Zero · · Score: 3, Interesting

    Is someone trying to steal their rounded corners idea again?! ;)

    --
    Anons need not reply. Questions end with a question mark.
  10. Re:Patent troll by youngone · · Score: 2

    The relevant aspect of the troll metaphor is trying to charge people for something you don't own...

    No, I think you've misunderstood what a patent troll is.
    Here's a definition.
    Ownership or not is not the point:

    Patent trolls often do not manufacture products or supply services based upon the patents in question. However, some entities which do not practice their asserted patent may not be considered "patent trolls" when they license their patented technologies on reasonable terms in advance.

    Did they offer to license the tech to Apple? TFA does not say.

  11. Patents were already invalidated!!! by goombah99 · · Score: 4, Interesting

    From the article:

    Currently all four VirnetX patents in the suit have been invalidated by the Patent and Trademark Office, or its Patent Trial and Appeal Board, or both. This, confusingly, doesn’t actually halt the pace of VirnetX’s patent case: the invalidation is not legally binding until all appeals have been exhausted (and separately that case appears to still be ongoing).

    --
    Some drink at the fountain of knowledge. Others just gargle.
  12. Your logic is broken. by thesupraman · · Score: 2

    That simply does not work.

    what would happen then is everyone would refuse to license patents, and you would get a bunch of big cooperates basically saying 'Go on little inventor, we know you cannot afford to actually bring your great new invention to market, even though it is profitable, so we will simple infringe it, make billions, and then claim you had no actual losses'

    Is that the world you are hoping for?

  13. Re:Patent troll by serviscope_minor · · Score: 2

    I'd go with "hate the game, not the player"

    I won't. Shitty behaviour is not OK just because "everyone" else is doing it. They are adults in full control of their faculties, so they are as much at fault as the game.

    And Apple's been pretty sue-happy about some pretty silly patents, so it' hard to feel much sympathy either.

    --
    SJW n. One who posts facts.