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On Tuesday, the Supreme Court denied a bid by patent holding company VirnetX to revive a $503 million patent infringement case against Apple, ending a 14-year legal battle between the two companies.
The decision upholds a March 2023 appeals court ruling that invalidated two VirnetX patents related to virtual private network technology, which had been the basis for a jury awarding $502.8 million in damages to VirnetX in 2020.
With the country’s highest court declining to hear VirnetX’s appeal, Apple will not have to pay the $503 million. The ruling brings to a close a long-running dispute that has involved multiple trials and appeals since VirnetX first sued Apple in 2010.
VirnetX, a Nevada-based company that draws its revenue from licensing and litigating patents, had argued that decisions by the U.S. Patent and Trademark Office to invalidate its patents were improper. But the Supreme Court rejected that argument.
The Patent Trial and Appeal Board, which oversees the patent review process, had initially rejected Apple’s request to invalidate the VPN patents, saying Apple waited too long to file. But the patents were later ruled invalid in separate requests filed by Mangrove Partners, a hedge fund Apple was allowed to join.
VirnetX claimed Apple and Mangrove conspired to reach the time limit for challenging patents. But lower courts found the invalidation proper, noting federal law allows others to petition for reviewing patents’ validity.
Apple and Mangrove argued that VirnetX’s claims were not supported by federal law. The Biden administration, representing the patent office, also urged the justices to dismiss the case.
While Apple will get to keep the $503 million in this case, it has previously had to pay VirnetX $440 million for infringing other patents related to FaceTime and iMessage security.
The Supreme Court’s decision continues its trend of prevailing in patent lawsuits. Big tech companies like Apple have increasingly used the patent board’s review process to contest patents they’re accused of infringing.
The decision upholds a March 2023 appeals court ruling that invalidated two VirnetX patents related to virtual private network technology, which had been the basis for a jury awarding $502.8 million in damages to VirnetX in 2020.
With the country’s highest court declining to hear VirnetX’s appeal, Apple will not have to pay the $503 million. The ruling brings to a close a long-running dispute that has involved multiple trials and appeals since VirnetX first sued Apple in 2010.
VirnetX, a Nevada-based company that draws its revenue from licensing and litigating patents, had argued that decisions by the U.S. Patent and Trademark Office to invalidate its patents were improper. But the Supreme Court rejected that argument.
The Patent Trial and Appeal Board, which oversees the patent review process, had initially rejected Apple’s request to invalidate the VPN patents, saying Apple waited too long to file. But the patents were later ruled invalid in separate requests filed by Mangrove Partners, a hedge fund Apple was allowed to join.
VirnetX claimed Apple and Mangrove conspired to reach the time limit for challenging patents. But lower courts found the invalidation proper, noting federal law allows others to petition for reviewing patents’ validity.
Apple and Mangrove argued that VirnetX’s claims were not supported by federal law. The Biden administration, representing the patent office, also urged the justices to dismiss the case.
While Apple will get to keep the $503 million in this case, it has previously had to pay VirnetX $440 million for infringing other patents related to FaceTime and iMessage security.
The Supreme Court’s decision continues its trend of prevailing in patent lawsuits. Big tech companies like Apple have increasingly used the patent board’s review process to contest patents they’re accused of infringing.
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