Apple Hit with $368 Million Judgment in VPN Patent Lawsuit from VirnetX

[MacRumors]

Bloomberg reports that VirnetX has been awarded a $368.2 million judgment against Apple in a 2010 patent lawsuit over virtual private networking (VPN) connectivity related to Apple's FaceTime video calling feature.

The VirnetX patents cover the use of a domain-name service to set up virtual private networks, through which a website owner can interact with customers in a secure way or an employee can work at home and get access to a company's electronic files. VirnetX had sought $708 million in damages.

"For years Apple refused to pay fair value for the VirnetX patents," Doug Cawley, a lawyer with McKool Smith in Dallas who represents VirnetX, said in closing arguments. "Apple says they don't infringe. But Apple developers testified that they didn't pay any attention to anyone's patents when developing their system."

The technology was developed as part of work conducted by defense company SAIC on behalf of the Central Intelligence Agency, and VirnetX is a holding company created by former SAIC employees. VirnetX has indicated that it plans to seek a halt to continuing use of its technology by Apple, so it is unclear how the two parties will proceed toward a potential resolution that would keep FaceTime intact.

Article Link: Apple Hit with $368 Million Judgment in VPN Patent Lawsuit from VirnetX

[Moof1904]

I hope face time doesn't go away. I use it all the time.

[TimUSCA]

Originally Posted by Moof1904

I hope face time doesn't go away. I use it all the time.

It won't.

[madmin]

So if I got that straight, anyone using dns to connect a vpn session has to pay these people who incidentally already got paid by the govt to develop their system in the first place ? Dunno bout Facetime but it sure is Facepalm !

[brock2621]

"We invented the Internet connecting 2 devices..."

[JGowan]

What's good for the goose is good for the gander.

[xxgilxx]

Ouch!

[EbookReader]

the patent system is broken.

[Popeye206]

Just keeping all the lawyers employed.

[Thunderhawks]

Originally Posted by MacRumors

VirnetX has indicated that it plans to seek a halt to continuing use of its technology by Apple, so it is unclear how the two parties will proceed toward a potential resolution that would keep FaceTime intact.

HALT = $$$$chmalt !

They'll get paid and life goes on.

[EbookReader]

http://www.bloomberg.com/news/2012-1...-trial-1-.html

The focus of the trial before U.S. District Judge Leonard Davis was on Apple’s FaceTime, which lets people use Mac computers to make video calls to an iPhone, iPod Touch or iPad. The Cupertino, California-based company said it used a different technology than what was covered by the VirnetX patents.
“Apple does not owe money to VirnetX,” Danny Williams, a lawyer with Williams, Morgan & Amerson in Houston who represents Apple, told the jury. “VirnetX is not entitled to money for things they did not invent. The VirnetX technology, if used, is a small part of very large, complex products.”

[KnightWRX]

Originally Posted by EbookReader

the patent system is broken.

Oh, so when it's Apple that's guilty, the patent is broken...

Software patents are just an abheration.

[Oletros]

And people still say that software patents are good

[HobeSoundDarryl]

(judgement against Apple) Cue 500+ posts about the patent system being broken, needs reformed, stupid patent system, patent trolls, this shouldn't even be patentable, etc.

(judgement for Apple) Cue 500+ posts about patent system working, "die _______ die!", intellectual property should be protected, serves them right, other companies should innovate rather than copy, etc.

[nutjob]

What goes around comes around.

[jessica.]

Originally Posted by EbookReader

the patent system is broken.

If you truly believe this then I totally hope you're not found in the threads discussing Apple suing Samsung cheering them on.

The patent system isn't designed to work in Apple's favor. If anyone thinks that then I can understand why they believe the system is broken.

[neuropsychguy]

Originally Posted by KnightWRX

Oh, so when it's Apple that's guilty, the patent is broken...

It's broken when Apple wins and broken when Apple loses. The brokenness of the patent system transcends and pre-dates individual rulings.

The fact that Apple or any number of other companies can patent some of the things that they patent is supporting evidence for the need of an overhaul of the patent system. Patents are necessary to protect inventions and innovations but patents are granted with what amounts to arbitrariness in our world of changing technology. The patent system was designed for a much different day and has to be overhauled.

[ntg]

"Apple Hit with $368 Million Judgment in VPN Patent Lawsuit from VirnetX"

? hmmm

not much of a 'Hit' from the 100+ billion...

I imagine they'll pool their pocket-change for this one!

[EbookReader]

Look like Apple is not the only one being sued by VirnetX:

VirnetX, which won a $200 million settlement from Microsoft Corp. in 2010

It also has claims against Cisco Systems Inc. (CSCO), Avaya Inc. and Siemens Enterprise Communications GmbH that are scheduled for trial in March.

[camnchar]

Tim Cook carries that much around in his wallet for mad money.

[Radio]

wow - finally apple is guilty of something besides being patent trolls

[Krazy Bill]

Krazy Bill's Father: "Son, you should be a patent lawyer when you grow up."

Krazy Bill: "Why? Nobody is stupid enough to steal patents you silly old dude."

[melendezest]

Ouch. Who failed here, Apple's lawyers or their engineering team, with regards to seeing if a patent already existed for what they wanted to implement?

Interesting..Oh, well. You win some, you lose some.

Now pay up, sucker...

Can we please get back to the actual Apple rumors now? So sick of reports of Apple's legal battles!

"I don't caaaaarrrre!!!" -Lloyd (Dumb & Dumber)

[Renzatic]

Originally Posted by jessica.

The patent system isn't designed to work in Apple's favor. If anyone thinks that then I can understand why they believe the system is broken.

I think anyone winning from this patent is proof enough the system is in dire need of fixing. These people basically managed to patent VPNs just by wording it carefully.

Just check it out. This is the abstract to one of the patents Apple was sued over...

"A secure domain name service for a computer network is disclosed that includes a portal connected to a computer network, such as the Internet, and a domain name database connected to the computer network through the portal. The portal authenticates a query for a secure computer network address, and the domain name database stores secure computer network addresses for the computer network. Each secure computer network address is based on a non-standard top-level domain name, such as .scom, .sorg, .snet, .snet, .sedu, .smil and .sint."

It's a VPN with funky domain names. And it was filed in 2000! VPNs have been around since, like, I dunno...3 BC give or take.

[Popeye206]

Originally Posted by Oletros

And people still say that software patents are good

They are good when they are valid. Seems the whole industry is at fault for patenting silly things as well as just ignoring patents until someone complains.

The whole technology patent system needs an overhaul... companies who truly do something revolutionary need better ways to protect their inventions while not letting other less innovative patents hold back progress.

It's a tough situation... companies and people who truly invent something deserve protection for their IP.