Apple Ordered to Pay $625.6 Million in Patent Suit Vs VirnetX

By Josh Beckerman 

Apple Inc. was ordered to pay $625.6 million in a patent-infringement suit filed by VirnetX Holding Corp. regarding communications features on iPhones, iPads and other devices.

VirnetX alleged in 2010 that Apple's FaceTime and a feature related to virtual private networks infringed the firm's patents.

In 2014, a federal appeals court threw out a $368 million jury award against Apple, ruling that the verdict was "tainted" by erroneous jury instructions. The appeals court sided with VirnetX on some issues.

VirnetX shares rose 30% in the regular session. In after-hours trading, the stock surged 89% to $9.05.

Patent awards are frequently reduced by appeals courts.

The amount of the Texas jury's verdict was within a range that VirnetX requested, according to Jason Cassady, one of VirnetX's attorneys, who said the outcome was "well-deserved."

An Apple spokeswoman said the company is "surprised and disappointed by the verdict" and will appeal. She said "cases like this simply reinforce the desperate need for patent reform."

A VirnetX company spokesman didn't immediately respond to a request for comment. The Zephyr Cove, Nev., company derives its revenue from patent licensing.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

February 03, 2016 20:40 ET (01:40 GMT)

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