VirnetX $368 Million Jury Verdict Against Apple Upheld Court Sides with VirnetX on Daily Damages Award of $330,201, Orders Parties to Negotiate an Ongoing Royalty Agreement within 45 days
ZEPHYR COVE, Nev., Feb. 27, 2013 /PRNewswire/ -- VirnetX™ Holding Corporation (NYSE MKT: VHC), an Internet security software and technology company, announced today that on February 26, 2013, the United States District Court for the Eastern District of Texas, Tyler Division, issued its Memorandum Opinion and Order ("Order") regarding post-trial motions resulting from the prior $368 million jury verdict ("Verdict") for VirnetX in the ongoing patent infringement action between VirnetX Inc. ("VirnetX") and Apple Inc. ("Apple").
In the Order, the Court denied Apple's motion to reduce the damages awarded by the jury for past infringement. The Court further denied Apple's request for a new trial on the liability and damages portions of the Verdict. Additionally, the Court granted VirnetX's motions for pre-judgment interest, post-judgment interest, and post-verdict damages to date. Specifically, the Court ordered that Apple pay $33,561 in daily interest up to final judgment and $330,201 in daily damages for infringement up to final judgment for certain Apple devices included in the Verdict.
The Court denied VirnetX's request for a permanent injunction. In doing so, the Court ordered the parties to mediate over a license in the next 45 days for Apple's future infringing use not covered by the Court's Order. If the parties fail to agree to a license, the Court requests that VirnetX file the appropriate motion with the Court.
In light of this result, VirnetX intends to withdraw its complaint filed with the United States International Trade Commission (ITC) against Apple Inc. and pursue comprehensive relief from Apple's infringement through the district court system.
"We are extremely pleased with the Court's Order in our suit against Apple," said Kendall Larsen, VirnetX CEO and President. "We look forward to negotiating a license with Apple that includes an ongoing royalty agreement."
VirnetX Holding Corporation is an Internet security software and technology company with patented technology for secure communications including 4G LTE security. The Company's software and technology solutions, including its secure domain name registry and GABRIEL Connection Technology™, are designed to facilitate secure communications and to create a secure environment for real-time communication applications such as instant messaging, VoIP, smart phones, eReaders and video conferencing. The Company's patent portfolio includes 20 U.S. and 32 international patents and over 100 pending applications. For more information, please visit www.virnetx.com.
Forward Looking Statements
Statements in this press release that are not statements of historical or current fact, including statements regarding the strength of the patent portfolio and license negotiations, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's patent portfolio, legal proceedings, licensing efforts , strategy and position in the 4G/LTE network security market. Such forward-looking statements are based on expectations, estimates and projections about the markets in which the Company operates, management's beliefs, and certain assumptions made by management and involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements, including but not limited to (1) the outcome of any legal proceedings that have been or may be initiated by the Company or that may be initiated against the Company; (2) the ability to capitalize on the Company's patent portfolio and generate licensing fees and revenues; (3) the ability of the Company to be successful in entering into licensing relationships with its targeted customers on commercially acceptable terms; (4) potential challenges to the validity of the Company's patents underlying its licensing opportunities; (5) the ability of the Company to achieve widespread customer adoption of the Company's GABRIEL Communication Technology™ and its secure domain name registry; (6) the level of adoption of the 3GPP Series 33 security specifications; (7) whether or not the Company's patents or patent applications may be determined to be or become essential to any standards or specifications in the 3GPP LTE, SAE project or otherwise; (8) the extent to which specifications relating to any of the Company's patents or patent applications may be adopted as a final standard, if at all; and (9) the possibility that Company may be adversely affected by other economic, business, and/or competitive factors. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "anticipates," or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission, including those under the heading "Risk Factors" in Company's Annual Report on Form 10-K filed with the SEC on February 29, 2012 and in the Company's Quarterly Report on Form 10-Q filed with the SEC on November 9, 2012. Many of the factors that will determine the outcome of the subject matter of this press release are beyond the Company's ability to control or predict. Except as required by law, the Company is under no duty to update any of the forward-looking statements after the date of this press release to conform to actual results.
VirnetX Holding Corporation
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