عربي English Türkçe اردو فارسى
Logo
Latest News
Technology

Apple Fails to Overturn VirnetX Patent Verdict, Could Owe over $1.1 Bln

A federal judge denied Apple bid to set aside or reduce a $502.8 million patent infringement verdict favoring VirnetX Holding Corp. (Reuters)
A federal judge denied Apple bid to set aside or reduce a $502.8 million patent infringement verdict favoring VirnetX Holding Corp. (Reuters)
TT
20
TT

Apple Fails to Overturn VirnetX Patent Verdict, Could Owe over $1.1 Bln

A federal judge denied Apple bid to set aside or reduce a $502.8 million patent infringement verdict favoring VirnetX Holding Corp. (Reuters)
A federal judge denied Apple bid to set aside or reduce a $502.8 million patent infringement verdict favoring VirnetX Holding Corp. (Reuters)

A federal judge denied Apple Inc’s bid to set aside or reduce a $502.8 million patent infringement verdict favoring VirnetX Holding Corp, and awarded interest and royalties that could boost Apple’s total payout in two lawsuits above $1.1 billion.

In a decision issued on Friday, US District Judge Robert Schroeder in Tyler, Texas rejected Apple’s request for a new trial and several other claims.

These included that VirnetX’s award should not exceed $113.7 million, and that jurors should have been told the US Patent and Trademark Office had deemed VirnetX’s claims “unpatentable.”

Jurors in October found that Apple infringed two VirnetX patents related to secure networks, known as virtual private networks, to which owners of various iPhones and iPads may connect.

Schroeder also awarded royalties of 84 cents per unit for future infringements, mirroring the rate set by the jury. Apple had said future royalties should be zero, or else no more than 19 cents per unit.

Apple and VirnetX did not immediately respond to requests for comment.

In afternoon trading, VirnetX shares were up 54 cents, or 10.8%, at $5.63.

Apple, based in Cupertino, California, and VirnetX, based in Zephyr Cove, Nevada, have battled in patent litigation for more than a decade.

Last March, Apple paid VirnetX $454 million after the US Supreme Court refused to hear the iPhone maker’s appeal in an earlier patent case.

In a Dec. 18 court filing, Apple said the latest award could boost its payout in both cases to $1.116 billion.

The case is VirnetX Inc v. Apple Inc, US District Court, Eastern District of Texas, No. 12-00855.

Most Viewed

 
Technology

US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
TT
20
TT

US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)

The US Department of Commerce is considering revoking authorizations granted in recent years to global chipmakers Samsung, SK Hynix and TSMC, making it more difficult for them to receive US goods and technology at their plants in China, according to people familiar with the matter.

The chances of the United States withdrawing the authorizations are unclear. But with such a move, it would be harder for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries, Reuters said.

A White House official said the United States was "just laying the groundwork" in case the truce reached between the two countries fell apart. But the official expressed confidence that the trade agreement would go forward and that rare earths would flow from China, as agreed.

"There is currently no intention of deploying this tactic," the official said. "It's another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations."

Shares of US chip equipment makers that supply plants in China fell when the Wall Street Journal first reported the news earlier on Friday. KLA Corp dropped 2.4%, Lam Research fell 1.9% and Applied Materials sank 2%. Shares of Micron, a major competitor to Samsung and SK Hynix in the memory chip sector, rose 1.5%.

A TSMC spokesman declined comment. Samsung and Hynix did not immediately respond to requests for comment. Lam Research, KLA and Applied Materials did not immediately respond, either.

In October 2022, after the United States placed sweeping restrictions on US chipmaking equipment to China, it gave foreign manufacturers like Samsung and Hynix letters authorizing them to receive goods.

In 2023 and 2024, the companies received what is known as Validated End User status in order to continue the trade.

A company with VEU status is able to receive designated goods from a US company without the supplier obtaining multiple export licenses to ship to them. VEU status enables entities to receive US-controlled products and technologies "more easily, quickly and reliably," as the Commerce Department website puts it.

The VEU authorizations come with conditions, a person familiar with the matter said, including prohibitions on certain equipment and reporting requirements.

“Chipmakers will still be able to operate in China," a Commerce Department spokesperson said in a statement when asked about the possible revocations. "The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.”

Industry sources said that if it became more difficult for US semiconductor equipment companies to ship to foreign multinationals, it would only help domestic Chinese competitors.

"It’s a gift," one said.