US jury demands millions in compensation from Apple in patent dispute

Apple must pay nearly $626 million (635 million Swiss francs) to an information technology company for alleged patent infringements, according to a U.S. jury.

Jurors in a Texas federal court found Apple guilty Wednesday of infringing on several patents held by the company VirnetX. VirnetX accuses Apple of using some of the company's technology in its iPhone and iPad to communicate securely over the Internet.

The dispute between VirnetX and Apple has been going on for years. Apple had already been ordered to pay damages in a previous trial in 2012, but obtained a new trial to have the amount of compensation reviewed. The sum now assessed by the Texas jury is about twice as high as in the previous trial and relates to further patents.

The decision still has to be confirmed by a judge. However, Apple announced that it would take action against the decision. In an email to the AFP news agency, the company said it was "surprised and disappointed" by the jury's verdict. It said the patents used had been developed by Apple employees. Apple owns patents for these, while VirnetX's patents have been declared invalid by the patent authority.

VirnetX specializes in selling licenses on patents. Patent litigation is therefore an important business area for the company. Companies that hold patents and make money from them in lawsuits are described in Silicon Valley as innovation-stifling "trolls" who made a reform of US patent laws necessary. Apple, referring to VirnetX, said, "Cases like this reinforce the desperate need for patent reform."

 

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