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Apple Must Pay Patent Troll More Than $500 Million In iMessage Case (bloomberg.com)

A federal court in Texas today has ordered Apple to pay $502.6 million to a patent troll called VirnetX, the latest twist in a dispute now in its eighth year. "VirnetX claimed that Apple's FaceTime, VPN on Demand and iMessage features infringe four patents related to secure communications, claims that Apple denied," reports Bloomberg. From the report: The dispute has bounced between the district court, patent office and Federal Circuit since 2010. There have been multiple trials, most recently one involving earlier versions of the Apple devices. A jury in that case awarded $302 million that a judge later increased to $439.7 million. Kendall Larsen, CEO of VirnetX, said the damages, which were based on sales of more than 400 million Apple devices, were "fair." "The evidence was clear," Larsen said after the verdict was announced. "Tell the truth and you don't have to worry about anything." For VirnetX, the jury verdict in its favor could be a short-lived victory. The Patent Trial and Appeal Board has said the patents are invalid, in cases that are currently before the U.S. Court of Appeals for the Federal Circuit in Washington. The Federal Circuit, which handles all patent appeals, declined to put this trial on hold, saying it was so far along that a verdict would come before a final validity decision.

43 of 75 comments (clear)

  1. Patents are broken. by Mr0bvious · · Score: 3, Informative

    Not much more to it really.

    --
    Never happened. True story.
    1. Re:Patents are broken. by ShanghaiBill · · Score: 4, Insightful

      We need more cases like these to incentivize big corps to get behind patent reform. They still feel like the current system works to their benefit, since the ability to shut down upstart competitors is more important to them than the occasional troll payout.

    2. Re:Patents are broken. by harvey+the+nerd · · Score: 2

      Also Tyler TX is a corrupt East Texas hick town founded on the Federal courthouse. Their economy has been funded to varying degrees on this sh--. Tyler even has some vicious traffic traps to fill the coffers since they spent all the oil money.

    3. Re:Patents are broken. by chthon · · Score: 1

      Actually, this reminds me of an episode of "The Invisible Man", the first series with David McCallum. When reality become stranger than fiction...

    4. Re: Patents are broken. by Anonymous Coward · · Score: 1

      Oh, one of my cities has been nuked. What should I do?

      a) Propose global disarmament.
      b) Buy more nukes.

      or more like

      c) If I have the power, a) for others + b) for me

    5. Re:Patents are broken. by angel'o'sphere · · Score: 1

      Not only patent reform, but also a reform of that jury system.
      How many countries do use juries? And for kind of cases?

      In Germany this would be decided by the judges, based on what the parties bring as arguments and on expert opinions.

      --
      Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
    6. Re:Patents are broken. by AutodidactLabrat · · Score: 1

      And that is why victims of defective products in Germany get no compensation, on average
      It's easier to buy judges

    7. Re:Patents are broken. by angel'o'sphere · · Score: 1

      Of course they get a compensation, but not such absurd amounts like you often get in the US for your own stupidity.

      --
      Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
  2. patent troll by fattmatt · · Score: 1

    They claim to have products, do they really qualify as a patent troll? I thought patent trolls just bought up crappy patents and try to collect on people who actually created products that are "close enough" to fool that corrupt judge down in TX. Still lame no matter what.

    1. Re:patent troll by molarmass192 · · Score: 5, Interesting

      Marshal, TX literally would not exist if it wasn't for the corrupt courts there. The judges there will keep gorging at the trough that feeds them until it's taken away forcefully by the supreme court, at least that's the hope.

      --

      Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws-Plato
    2. Re:patent troll by youngone · · Score: 1

      This is a weird way to run a country.

    3. Re:patent troll by RandomFactor · · Score: 1

      Marshall, TX was founded in 1841. It existed before patent trolling was a thing and is pretty decent size for cities in the area (23k) Why would it not exist?

      --
      --- Mercutio was right.
    4. Re:patent troll by stabiesoft · · Score: 1

      They did not say it would have never existed, only that it would not currently exist. What "thing" besides handle patent cases does Marshall do now?

  3. Is Texas a troll state? by xx_chris · · Score: 3, Funny

    Well, the Eastern District of Texas at least.

  4. Immediate dismissal? by Anonymous Coward · · Score: 2, Insightful

    Why does the Patent Trial and Appeal Board decision not create immediate grounds for dismissal? Oh, right, East Texas.

    1. Re:Immediate dismissal? by Anonymous Coward · · Score: 1

      Why is round edge rectangles worth billions?
      Oh wait, San Jose USA

  5. Or.. by Memnos · · Score: 4, Funny

    Dear Apple,

    I offer to make everyone involved in the action against you "go away", at a significant discount vs $500M. I can assure you that it will all appear to be random happenstance.

    --
    I don't trust atoms -- they make up stuff.
  6. Parasites by Anonymous Coward · · Score: 2, Insightful

    This is the kind of capitalism that we would get if the hardcore right-wingers and libertarians had their way. Pure fascism. A world ruled by absolute psychopaths, corporate monopolies, and vulture capitalist parasites.

    But of course, these idiots will tell you that this is all the fault of the evil guberment and their evil patent law, or some other nonsense. Listening to them you would think that without governement, the world would be a paradise. Guess what asshole: Without governement, the world would be anarchy, it would be a darwinist hellhole. Oh, it would be in equilibrium, just like in nature. But nature is nothing but pain, suffering, cruelty and bloodshed. Escaping this hell on earth is the very reason humans created civilization. And civilization implies **gasp** governement !!!

    No, the reason patent trolls exist is not because of a broken patent law, or governement, or all that crap. They exist because we haven't shot them in the head yet.

    1. Re: Parasites by Anonymous Coward · · Score: 1

      An anarchy with extreme patent enforcement. I've seen a lot of bugfuck ideas about libertarianism, but I've never seen that particular kink. Well done.

    2. Re:Parasites by zabbey · · Score: 2

      Without governement, the world would be anarchy

      No shit.

      anarchy
      noun
      absence of government

    3. Re:Parasites by youngone · · Score: 4, Informative

      The sorts of Libertarians that post here are a weird US only thing as far as I can tell.
      I guess you have to grow up with an extreme level of right-wing propaganda surrounding you all your life before you can take any of that nonsense seriously.
      They're just useful idiots for the US ruling class anyway, ignore them.

    4. Re: Parasites by Anonymous Coward · · Score: 1

      English is not my native language. How many languages do YOU speak, trumptard ?

  7. Patent is invalid, but ruling stands by mveloso · · Score: 4, Interesting

    It's a strange quirk in the process that even though the patents have been declared invalid the ruling stands, at least until the validity of the patent has been adjudicated fully.

    It's the legal system doing out-of-order speculative branch execution for the court/legal system - with promises.

    1. Re:Patent is invalid, but ruling stands by Austerity+Empowers · · Score: 1

      Too bad only the result was committed, some people in east texas need to be committed as well.

  8. That money should be spent. by wolfheart111 · · Score: 1

    on a global planetary clean up effort. Since the $ resulted in environmental pollution we cant afford.

    --
    [($)]
    1. Re: That money should be spent. by Anonymous Coward · · Score: 1

      If you really want a global cleanup you could start by taking a shower once in a while ya fucking hippie.

  9. Re:Patent troll? by Anonymous Coward · · Score: 1

    You're a nutter. VirnetX is a holding corporation. They don't have a real product - their product page (https://www.virnetx.com/products/) only talks about the patents they hold.

  10. Re:Patent troll? by Bing+Tsher+E · · Score: 1

    From the page you 'linked' (learn how to do an href):

    Our Gabriel Collaboration Suite is an integrated set of real-time communication and collaboration applications built on top of the Gabriel Security Platform.

    Sounds like they have a software product.

    Are you implying that software companies don't have 'real products.' Them's fighting words for some of the people around here....

  11. Re: Patent troll? by c6gunner · · Score: 3, Informative

    Sounds like they have a software product.

    Do they really, though? Go read the product page for the "Gabriel" software. It's all fluff, and reads like one of those pages you might accidentally stumble upon when you use google and the results turn out to be just spam pages repeating the same key-phrase ad nauseum.

    How many customers do they have? Does the software actually make use of the patents in questions? When did they begin development of this product?

    As far as I can tell their "product" didn't come into existence until 2014, whereas they've been suing apple since 2010.

    They certainly seem to fit definition of a patent troll. The fact that they eventually pumped out some software is mere window-dressing; most likely it's intended to lend them credibility rather than actually attract customers.

  12. Good question. Arguments both ways by raymorris · · Score: 5, Interesting

    That's a good question. There are arguments both ways.

    VirnetX WAS a research and development company that employed a lot of scientists and did good work. They z created* technology, they didn't mass produce and market it. Instead they did the research and licensed their patents to telecommunications companies and others.

    Then somewhere along the line they realised they could *buy" parents cheaper than they could do the original research. They started licensing out patents that they bought, serving as a match-maker between researchers and companies that needed the technology. So far so good, in my opinion. We can see they got into the patent business, though.

    Patent trolls frequently use "submarine patents", surprising companies *after* they have developed a product. That's not the case here. Apple engineers knew they were violating patents as they developed Apple's products. I don't know if Apple discussed license terms with VirnetX.

    On the other hand, it seems these patents may not be valid after all. Patent trolls do frequently use questionable patents.

    1. Re:Good question. Arguments both ways by Anonymous Coward · · Score: 1

      Every time I am writing a line of code whatever the line, I know that I am violating patents. Patent system is broken. What is your point?

    2. Re:Good question. Arguments both ways by SvnLyrBrto · · Score: 1

      Bullocks. They're a troll and nothing more. Real artists ship.

      --
      Imagine all the people...
  13. Re:Patent troll? by pete6677 · · Score: 1

    Then why doesn't Apple hit them with a countersuit? With all of Apple's patents, surely there are at least a couple that anyone using a computer is possibly violating?

  14. Re:Patent thief is caught; has to pay owner. by harvey+the+nerd · · Score: 2

    Tyler is a parasite problem. The middle of nowhere profiting off the Federal Courthouse for about 170 years.

  15. Re: Patent troll? by Anonymous Coward · · Score: 2, Interesting

    Sounds like they have a software product.

    Do they really, though?

    It seems so, you can download it here: https://www.myvirnetx.com/inde...'

    It would be a damn shame if they were using some open source under a viral license other than the declared libav, libswscale and libswresample, or had failed to fully comply with the dependencies for those and someone sued them over it though, wouldn't it...

  16. Re:Long time coming by GrandCow · · Score: 1

    I can't tell if you're being incredibly sarcastic, drunk and high at the same time, or experiencing a serious mental issue.

    If you're being sarcastic, the joke has gone so far back around the whole circle that it's just coming off as ignorant. If it's anything else other than you trying to make a funny and just whiffing so hard it looks like you had a stroke, please seek some professional help. You're seriously off the deep end here.

    --
    "Well kids, you tried your best, and you failed. The lesson is, never try." -Homer Simpson
  17. Re: Patent troll? by Gr8Apes · · Score: 1

    So - secure mail - existed since at least 1995 with the advent of PGP. Secure messaging/group messaging has existed since at least the introduction of OTR, which was way pre 2004 (can't be bothered to look it up) Secure file sharing and screen sharing both date even further back with ssh tunneling capabilities. And ssh also allows you to do secure backups via rsync and, actually, provides the secure gateway functionality. So if everything existed prior to Gabriel software and its associated patents then those patents are void due to prior art. If the patents predate ssh, the patents would have expired a long time ago. In fact, when I read some of the Virnetx patents years ago my thoughts were "These all have prior art and are invalid". I'm not sure why the patents haven't been thrown out as invalid other than the "District Court of East Texas". In any case, Virnetx patents are done, IIRC, because they were all set to expire within the last couple of years.

    --
    The cesspool just got a check and balance.
  18. Story Title Misleading by Lodragandraoidh · · Score: 2
    • Apple Must Pay Patent Troll...

    should read:

    • Patent Troll Wins Case Against Apple...Award Pending Appellate Ruling

    Reading the article, Apple isn't paying anything until the final appellate court's adjudication, which very likely will invalidate the patents in question.

    IANAL

    --

    Lodragan Draoidh
    The more you explain it, the more I don't understand it. - Mark Twain
    1. Re:Story Title Misleading by Lodragandraoidh · · Score: 1

      Original article title was:

      • Apple Must Pay $502.6 Million to VirnetX, Federal Jury Rules

      ...which has the key piece of information after the comma, lacking in the posting title. Did Slashdot editor do this on purpose, to generate sensationalist rhetoric in the comments section?

      --

      Lodragan Draoidh
      The more you explain it, the more I don't understand it. - Mark Twain
  19. Re:Just stop selling stuff in the US? by Lodragandraoidh · · Score: 1

    Correct me if I'm wrong, but I thought the USA had the largest open market for consumer electronics? If you give up that market, then you're likely to lose over half of your revenue (assuming your a global company). Don't know how that would solve the problem.

    --

    Lodragan Draoidh
    The more you explain it, the more I don't understand it. - Mark Twain
  20. Re:Long time coming by Aighearach · · Score: 1

    Whiffing in that sentence would mean swinging and missing, something that makes no sense in relation to a stroke.

    If you were trying to use the meaning of whiff that involves the sense of smell, you'll need to create some sort of context for it. Trying to be funny does not in any way invoke smelling something, but failure at it is often described as a miss.

    Maybe it is just too complicated a word? Try with less wordsmithing next time; stick to words you know.

  21. thar orta be a fed'ral law by teasea · · Score: 1

    make it illegal to try patent cases in Texas.

  22. Re:Patent troll? by Plumpaquatsch · · Score: 1

    The Apple PR machine is really in full swing.

    The patent was found clear and genuine in every single way.

    The only bad thing is that Apple tried to get away with it.

    Errm, nope. The Texas court said Apple violated the patents, assuming (but not deciding) wether the patents were valid. The Patent Trial and Appeal Board has said the patents are invalid, in cases that are currently before the U.S. Court of Appeals for the Federal Circuit in Washington. If those cases are confirmed, this Texas verdict becomes meaningless, because you can't violate invalid patents.

    --
    Of course news about a fake are Fake News.