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
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.
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 filedwith
the United States International Trade Commission (ITC)againstApple Inc.and
pursue comprehensive relief from Apple's infringement through the district
"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 applicationsmay beadopted 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
VirnetX and GABRIEL Connection Technology are trademarks of VirnetX Holding
Corporation. Other company and product names may be trademarks of their
SOURCE VirnetX Holding Corporation
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