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Can VirnetX (VHC) Beat Apple (AAPL) In Court... Again?
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Shares of VirnetX Holding Corp. (VHC - Free Report) , often labeled a “patent troll” by those in the technology industry, are soaring over 15% on Tuesday thanks to its latest legal move against Apple (AAPL - Free Report) in a lawsuit over Facetime and iMessage technology.
Back in February, a Texas court ruled that Apple violated four patents held by VirnetX and awarded the company $625.6 million in damages. As Apple appealed the decision, VirnetX actually requested that the judge increase the payout by an additional $190 million. VirnetX also wants an injunction against FaceTime, iMessage, and other Apple software features.
Today’s price action seems to be coming from a new filing from VirnetX’s lawyers that argues that VirnetX’s case should be free from the constraints of previous patent-related decisions and eligibly for a larger payout.
Citing other case law, the company’s legal team tells the Court that “whether and how much damages should be enhanced is to be decided by ‘tak[ing] into account the particular circumstances of each case.’”
“The jury saw what we have been saying all along: Apple has been infringing VirnetX’s patented technology for years,” VirnetX’s lawyers said in a statement following the original decision.
VirnetX holds about 100 internet security patents around the world. It is often labeled a “patent troll,” or a company that markets no products or services and instead generates all of its revenue through filing for patents and suing anyone that infringes on them. The call for patent reform to defeat patent trolls as reached all the way to the White House, and even President Obama has called for changes.
In 2014, the U.S. Supreme Court made a monumental ruling in Alice Corp. vs. CLS Bank. This ruling took a massive chunk out of what could be considered a legitimate patent, and since the decision there has been a 78% win rate for defendants using the Alice case to challenge a patent.
For whatever reason, East Texas, where the VirnetX case is being decided, has become a haven for patent trolls following the Alice case. Judges and juries in this district have proven to be much more sympathetic to the holders of patents.
If VirnetX’s case holds up, the company could be in for another massive paycheck from Apple, which could send shares soaring even higher.
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Can VirnetX (VHC) Beat Apple (AAPL) In Court... Again?
Shares of VirnetX Holding Corp. (VHC - Free Report) , often labeled a “patent troll” by those in the technology industry, are soaring over 15% on Tuesday thanks to its latest legal move against Apple (AAPL - Free Report) in a lawsuit over Facetime and iMessage technology.
Back in February, a Texas court ruled that Apple violated four patents held by VirnetX and awarded the company $625.6 million in damages. As Apple appealed the decision, VirnetX actually requested that the judge increase the payout by an additional $190 million. VirnetX also wants an injunction against FaceTime, iMessage, and other Apple software features.
Today’s price action seems to be coming from a new filing from VirnetX’s lawyers that argues that VirnetX’s case should be free from the constraints of previous patent-related decisions and eligibly for a larger payout.
Citing other case law, the company’s legal team tells the Court that “whether and how much damages should be enhanced is to be decided by ‘tak[ing] into account the particular circumstances of each case.’”
“The jury saw what we have been saying all along: Apple has been infringing VirnetX’s patented technology for years,” VirnetX’s lawyers said in a statement following the original decision.
VirnetX holds about 100 internet security patents around the world. It is often labeled a “patent troll,” or a company that markets no products or services and instead generates all of its revenue through filing for patents and suing anyone that infringes on them. The call for patent reform to defeat patent trolls as reached all the way to the White House, and even President Obama has called for changes.
In 2014, the U.S. Supreme Court made a monumental ruling in Alice Corp. vs. CLS Bank. This ruling took a massive chunk out of what could be considered a legitimate patent, and since the decision there has been a 78% win rate for defendants using the Alice case to challenge a patent.
For whatever reason, East Texas, where the VirnetX case is being decided, has become a haven for patent trolls following the Alice case. Judges and juries in this district have proven to be much more sympathetic to the holders of patents.
If VirnetX’s case holds up, the company could be in for another massive paycheck from Apple, which could send shares soaring even higher.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>