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Supreme Court Declines to Hear VirnetX’s Appeal Against Apple
The U.S. Supreme Court has declined to hear an appeal from patent-licensing company VirnetX in its legal battle against Apple. The case involved a $502.8 million jury verdict that VirnetX had won against Apple in a dispute over internet-security patents. The lower court had overturned this verdict, and VirnetX had challenged the decision.
VirnetX and Apple have been embroiled in a 14-year-long legal dispute over internet-security patents, which has included multiple trials and appeals. The jury had awarded VirnetX $502.8 million in 2020 after finding that Apple’s iPhones and iPads infringed patents related to virtual private networks.
The U.S. Patent and Trademark Office’s Patent Trial and Appeal Board allows petitioners to challenge the validity of specific patents through a process known as inter partes review (IPR). Apple had filed petitions to invalidate VirnetX’s patents through this process, but the board rejected these requests. However, the board later declared the patents invalid based on separate requests from hedge fund Mangrove Partners, in cases that Apple was allowed to join.
The U.S. Court of Appeals for the Federal Circuit upheld the decisions to invalidate the patents and overturned the $502.8 million verdict. VirnetX had appealed to the Supreme Court, arguing that letting the rulings stand would encourage the “harassment” of patent owners at the board.
Apple and Mangrove responded that VirnetX’s arguments were not supported by applicable federal law, and the Biden administration urged the justices to reject the case.
VirnetX had previously won $440 million from Apple based on a 2016 verdict, alleging that the tech giant used its security technology in features like FaceTime video calls.
In conclusion, the Supreme Court’s decision not to hear VirnetX’s appeal marks a significant development in the ongoing legal battle between VirnetX and Apple. This decision has important implications for the patent landscape and the rights of patent owners in the technology industry.
