Apple Must Pay Up
Feb 27th 2013 12:28PM
A federal judge in Texas has upheld a jury verdict totaling $368 million against Apple Inc. (NASDAQ: AAPL). The jury's award to VirnetX Holding Corp. (NYSEMKT: VHC) is sweetened further by the judge's denial of several requests by Apple, including to reduce the award and for a new trial.
VirnetX did not get the permanent injunction it sought, but the court ordered the two companies to go to mediation in the next 45 days in order to work out the terms of a license going forward. VirnetX holds a patent on a method for transparently creating a virtual private network (VPN) between two computers, as well as other patents related to secure communications.
VirnetX will also receive a daily payment of $330,211 a day for the infringement and $33,561 a day in interest until Apple and the company settle on a licensing deal.
While the ruling is not insignificant, Apple's shareholder meeting today is likely to cause more excitement.
Shares of VirnetX are up 5.7% shortly after noon today, at $35.88 in a 52-week range of $19.13 to $41.93.
Filed under: 24/7 Wall St. Wire, Law Tagged: AAPL, featured, VHC