Apple Hit With $2.8 Billion Patent Lawsuit Over VoIP Technology

[MacRumors]

VoIP-Pal announced today that it has filed a lawsuit against Apple in a U.S. District Court in Las Vegas, Nevada, seeking over $2.8 billion in damages for alleged infringement of its patented internet communication technologies.

The Bellevue-based company calculated its $2,836,710,031 figure using a 1.25-percent royalty rate based on an apportionment of Apple's estimated historical profit from iPhone (55-percent), iPad (35-percent), and Mac (10-percent).

VoIP-Pal (VPLM) has over a dozen issued or pending patents, primarily related to VoIP technologies, a few of which it accuses Apple of infringing upon with services like FaceTime and iMessage on iPhone, iPad, and Mac.

Apple employs VPLM's innovative technology and products, features, and designs, and has widely distributed infringing products that have undermined VPLM's marketing efforts. Instead of pursuing independent product development, Apple employed VPLM's innovative caller attribute classification and routing product design, in violation of VPLM's valuable intellectual property rights.

The court filing cites multiple ways that Apple is allegedly infringing upon the patents, including the following iMessage claim:

In particular, devices running the iMessage application initiate a communication between a caller and a callee. The callee may be an Apple subscriber or a non-subscriber. In the case that the callee is an Apple subscriber, the communication is sent using iMessage. On the other hand, if the user is not an Apple subscriber or if iMessage is not available, the communication is sent using SMS/MMS. Apple's messaging system directly and/or indirectly practices certain claims of the '815 patent in order to determine the classification of a user, and, subsequently, how the call should be routed.

The lawsuit was originally initiated on February 9, but VoIP-Pal delayed pursuing legal action until Monday as the company says it remains engaged in discussions with Apple outside the courtroom regarding an amicable resolution. The company appears to be open to a sale or licensing of its patent portfolio.

"We are confident the current good will on both sides will result in a favorable outcome for all parties involved," said Emil Malak, CEO of VoIP-Pal.

VoIP-Pal, which acquired network operator Digifonica in 2013, describes itself as "a technical leader in the broadband VoIP market." The company does not currently generate income, but insists it is "absolutely not" a patent troll, noting that Digifonica began designing its system back in 2004.

We designed, built and tested super-nodes and nodes in Canada, England, and Norway, spending more than $17 million on development and execution in the process. At one time, we had more than twenty (20) engineers working on the software design and implementation. [...]

Due to the Great Recession in the mid 2000's, Digifonica was unable to continue supporting the platform, while it was continuing its significant investment in protecting the intellectual property it had developed. [...]

The infringing companies are making billions of dollars using technology that were conceived, designed, built, tested and patented by Digifonica.

VoIP-Pal has filed similar lawsuits against AT&T and Verizon in Las Vegas court.

Article Link: Apple Hit With $2.8 Billion Patent Lawsuit Over VoIP Technology

 

[sputnikv]

they say they're not, but they most definately sound like patent trolls

 

[Michaelgtrusa]

I'm looking at where they dev them.

 

[Shanesan]

Patenting a way for a computer to detect whether a device is registered with a central server or not?

Well blow me down, what a billion dollar idea.

 

[Steve121178]

The entire patent system needs to be reviewed. The things some companies have been awarded patents for is ridiculous.

 

[macfacts]

they say they're not, but they most definately sound like patent trolls

So Apple must be one too with all their car patents. No real car but Apple is already getting awards for most influential in the car industry.

 

[BeefCake 15]

A good practice litigation for Apple's Junior lawyers division

 

[Crosscreek]

Apple didn't infringe...just reinvented.

 

[Patriot24]

A good practice litigation for Apple's Junior lawyers division

I had conceived, designed, and tested a variation of that joke in another thread a few years ago. Nobody laughed or liked the post, but I'm going to go ahead and sue you for joke infringement.

I'd be happy to settle. Just send me one of those new MacBooks and we'll call this thing even.

 

[mistasopz]

Patenting a way for a computer to detect whether a device is registered with a central server or not?

Well blow me down, what a billion dollar idea.

Not much better than Apple patenting slide to unlock, page turning, and pinch to zoom...

 

[apolloa]

So is this like Immersion technology? They invented and developed and brought to market something everyone else pays licensing for apart from Apple?

Or not?

In the eye's of people on here they will be labelled patent trolls anyway as that's koolaide thing to do isn't it...

 

[marmiteturkey]

​

VoIP-Pal, which acquired network operator Digifonica in 2013, describes itself as "a technical leader in the broadband VoIP market." The company does not currently generate income, but insists it is "absolutely not" a patent troll, noting that Digifonica began designing its system back in 2004.VoIP-Pal has filed similar lawsuits against AT&T and Verizon in Las Vegas court.

This is pretty much the textbook definition of a patent troll - company acquires other company for patents, does not make a product, and then starts suing others for patent infringement.

 

[autrefois]

I think the mods forgot this notice—

Note: Due to the fact that this story involves patents, all forum members and site visitors are welcome to read the story, but no posting is allowed since these discussions invariably lead to people posting nonsense that has absolutely nothing to do with the actual case mentioned in the story or with how patents in general work.

 

[Patriot24]

Not much better than Apple patenting slide to unlock, page turning, and pinch to zoom...

One of the main differences being that Apple actually implemented and sold products and services with those (at the time) differentiating features. These guys patented an idea that they were never going to implement and are now acting like they were somehow injured in the process by a third party that had never heard of them or their idea.

 

[John Mcgregor]

**********ing patent trolls waited for so many years for fat stacks of money.

 

[BeefCake 15]

I had conceived, designed, and tested a variation of that joke in another thread a few years ago. Nobody laughed or liked the post, but I'm going to go ahead and sue you for joke infringement.

I'd be happy to settle. Just send me one of those new MacBooks and we'll call this thing even.

If 20 Posts have passed since your joke was made, it shall be considered expired and in the public domain. I'll still send you a lightning cable valued at $99 based on my greedy estimate for your trouble.

 

[MuckSavage70]

Another week, another patent lawsuit.

 

[sputnikv]

So Apple must be one too with all their car patents. No real car but Apple is already getting awards for most influential in the car industry.

except apple isn't suing other people over its car patents, at least not while it itself doesn't have a car

 

[Gorms]

Not much better than Apple patenting slide to unlock, page turning, and pinch to zoom...

Except Apple had practical applications for those patents in an actual product?

 

[Patriot24]

If 20 Posts have passed since your joke was made, it shall be considered expired and in the public domain. I'll still send you a lightning cable valued at $99 based on my greedy estimate for your trouble.

I'd like to go to arbitration over the precise color of the lightning cable being proposed. An impartial third party would be best to determine the relative value of the color and how it pertains to this case.

 

[Orlandoech]

While I do agree and believe the amount of patent trolls are a joke, I also believe  does infringe upon a lot of patents. USA patent laws are a joke none-the-less.

 

[BeefCake 15]

I'd like to go to arbitration over the precise color of the lightning cable being proposed. An impartial third party would be best to determine the relative value of the color and how it pertains to this case.

I will submit my request that the company behind Monster Cables settle the arbitration.

 

[2457282]

In the actual filing, it says --

PRAYER FOR RELIEF
WHEREFORE, VPLM prays for relief, as follows:

So they must know that they will be up against some serious lawyer if they are praying for relief. LOL

Seriously, the language of this pleading is strange, but what happens in Vegas......

 

[Popeye206]

So is this like Immersion technology? They invented and developed and brought to market something everyone else pays licensing for apart from Apple?

Or not?

In the eye's of people on here they will be labelled patent trolls anyway as that's koolaide thing to do isn't it...

Did you miss the part where they generate no income? So no one is paying them any royalties... including Apple right now. So, if it looks like a troll, and smells like a troll, they are probably a troll.

 

[Patriot24]

I will submit my request that the company behind Monster Cables settle the arbitration.

I am currently in litigation with Monster Cable on a separate, but equally damaging infringement regarding the usage of paper in their packaging. I had thought of paper documentation to describe and educate a purchaser of a product like a million years ago before it was cool.