VirnetX Holding Corporation (NYSEMKT:VHC) was looking forward to Apple Inc. (NASDAQ:AAPL) paying it $625.6 million for violating certain of its Internet security technology patents. But continued court battle has seen the order reversed by a federal court in Texas, thus dealing a VirnetX a serious setback.
VirnetX’s CEO, Kendall Larsen, has said that they have been disappointed by the decision by the federal court judge Robert Schroeder to void the order that required Apple to pay for violating their patents.
All is not lost
But all is not lost for VirnetX Holding Corporation (NYSEMKT:VHC). What Judge Schroeder has challenged is the way two cases were consolidated and tried as a single case. Judge Schroeder observed that combining the cases created an environment that didn’t accord Apple a fair trial.
As such, the judge has called for the cases to be retried afresh and separately. Trial of the first case is set to begin on September 26.
VirnetX Holding Corporation (NYSEMKT:VHC) is alleging that Apple infringed four of its patents. It further says that some of those stolen technologies can be found in iMessage and FaceTime. But Apple is fighting the allegations and the call for retrial of the cases provides the iPhone maker with another opportunity to push back against VirnetX’s claims.
Court documents show that VirnetX obtained the patents being disputed in 2006 from an entity called Science Applications International Corp in 2006. VirnetX is mainly into the business of monetizing patents and it constantly looks out for violators of its patents and takes them to court to have them pay fines for infringing its copyright. The company can also reach a licensing settlement that allows it to generate money from the usage of its patents by third-parties.
Though VirnetX could still win the retrial of the cases against Apple, going back almost to the drawing board has created an environment of uncertainty for the company regarding the patent litigation. The outcome of the retrials could go either way and VirnetX would have lost an opportunity to become $625.6 million richer if the retrials ends in favor of Apple.
The $625.6 million that VirnetX Holding Corporation (NYSEMKT:VHC) was awarded in the patent litigation with Apple was one of the highest compensations in a patent case in the U.S.