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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.

16 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.

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

    Well, the Eastern District of Texas at least.

  3. 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.

  4. 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.
  5. 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 zabbey · · Score: 2

      Without governement, the world would be anarchy

      No shit.

      anarchy
      noun
      absence of government

    2. 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.

  6. 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.

  7. 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
  8. 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.

  9. 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.

  10. 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.

  11. 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...

  12. 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