The U.S. Supreme Court has refused to hear the VirnetX vs. Apple patent case, bringing an end to the 14-year-long battle between the two companies. As a result, Apple Inc. AAPL will not have to pay $502.8 million in damages awarded to VirnetX in 2020.
What Happened: The U.S. Supreme Court denied the appeal of patent-licensing company VirnetX, which aimed to reinstate a $502.8 million jury verdict it had previously won against Apple over a dispute concerning internet-security patents, reported CNBC.
The Supreme Court’s decision upheld the lower court’s ruling to overturn the verdict against Apple. It did not challenge the U.S. Patent and Trademark Office’s (USPTO) decisions to invalidate VirnetX’s patents. This marks a significant point in the 14-year-long legal tussle between the two firms.
In 2020, VirnetX was awarded $502.8 million by a different jury after it was found that Apple’s iPhones and iPads had infringed patents related to virtual private networks.
However, the patent office’s Patent Trial and Appeal Board later declared the patents invalid based on separate requests from hedge fund Mangrove Partners, which Apple was permitted to join.
The U.S. Court of Appeals for the Federal Circuit upheld the decisions to invalidate the patents and overturned the verdict last year. VirnetX had argued that these rulings would encourage the “harassment” of patent owners at the board.
Apple and Mangrove argued that VirnetX’s arguments were not supported by applicable federal law. The Biden administration, representing the patent office, also urged the justices to reject the case.
Why It Matters: This legal battle dates back to 2010 when VirnetX accused Apple of infringing on four patents related to secure networks and secure communications links.
In 2020, a jury ruled that Apple owed VirnetX $502.8 million for patent infringement. However, the U.S. Court of Appeals overturned this verdict last year, a decision now upheld by the Supreme Court.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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