VirtnetX (VHC) first filed a suit against Apple in April 2011, accusing Apple of infringing on a patent that detailed a method of establishing a secure connection between users via a virtual private network. It has also filed a similar complaint against ITC, Electronista reports, after winning a similar suit against Microsoft.
Aside from Microsoft, which VirtnetX won $200 million from, and Apple ($386 million), VirnetX also went after Cisco, Avaya and Siemens.
On Wednesday, Apple was denied a request for a new trial by Judge Leonard Davis, SeekingAlpha says. VirnetX developed a method by which a client computer and a target computer could establish a secure connection, and a method for creating a secure domain name service. Apple allegedly used the former in its creation of the FaceTime application.
Apple and VirnetX were ordered to convene and discuss a "royalty" settlement, which they have 45 days to push through. If they fail to do so, Judge Davis will decide himself. As a penalty to keep Apple from stalling, the company will pay $330,211 per day until the royalty settlement has been reached. Contributor EXPstocktrader at SeekingAlpha says that he believes this leaves very little opportunity for an appeal, and is looking forward to the settlement outcome. The next scheduled trial for VHC is due to start in March in a case against Cisco.
User drdrdr at SeekingAlpha commented that software patents are "killing innovation," and he could have a point. Apple is involved in over 50 legal disputes worldwide with Samsung alone, not to mention its trademark battles against pretty much any corporation with an apple-shaped logo. That begs the question of, how much more quickly would technology progress if instead of suing each other, corporations funneled the money into R&D instead?
"We can sit by and watch competitors steal our patented inventions, or we can do something about it," Steve Jobs said regarding a case against HTC in March 2010. The companies settled on a ten-year agreement for mutually licensing each company's patents current and future patents.
