ZEPHYR COVE, Nev., Oct. 16, 2017 /PRNewswire/ -- VirnetX™
Holding Corporation (NYSE AMERICAN: VHC), an Internet security
software and technology company, announced today that on
September 29, 2017, the United States
District Court for the Eastern District of Texas, Tyler Division, entered a Final
Judgement and issued its Memorandum Opinion and Order ("Order")
regarding post-trial motions resulting from the prior $302.4 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 all of Apple's motions: motion
for judgment as a matter of law of non-infringement, motion for
judgment as a matter of law on damages, motion for a new trial on
infringement, and motion for a new trial on damages. The Court
granted all VirnetX's motions; motion for willful infringement and
enhanced the royalty rate during the willfulness period by 50
percent, from $1.20 to $1.80,
awarding VirnetX enhanced damages in the amount of $41,271,364.80 against Apple thereby, granting
VirnetX a total sum of $343,699,314.80 in pre-interest damages. The
Court also awarded costs, certain attorneys' fees, and prejudgment
interest to VirnetX, and directed the parties to meet and confer
regarding these amounts. On October 13,
2017, having met and conferred and having reached agreements
on all amounts, parties jointly filed a motion asking the Court to
grant VirnetX an additional sum in the amount of $96,028,103.58 in agreed Bill of Costs,
Attorneys' Fees, and Prejudgment Interest. The Final Judgement is
only subject to appeal stemming from new issues unresolved in the
Apple I case, remanded back from the
United States Court of Appeals for the Federal Circuit.
The total Final Judgement amount including Jury Verdict,
Willful Infringement, Interest, Costs and Attorney Fees is
$439,727,418.
"We are elated with the Court's Final Judgement of $439 million in that not only did it affirm the
jury's verdict of $1.20 per
infringing iPhone, iPad and Mac Product, but also added for willful
infringement, interest and attorney fees. This is the third
time a jury has ruled in our favor against Apple," said
Kendall Larsen, VirnetX CEO and
President. "This Final Judgement amount is large because
sales of Apple's infringing products are large. The cost of
our security technology in infringing devices has been apportioned
and is less than a quarter of one percent of the device's cost. We
believe this established per device rate for security is very
reasonable and will greatly assist us with our domestic and global
licensing efforts."
About VirnetX
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 over 115 U.S. and international patents
and over 50 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 VirnetX's
intellectual property, constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. 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, including pending and future inter partes review
proceedings in the Patent and Trademark Office; (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 on March 16, 2017 and Quarterly Report on Form 10-Q
filed with the SEC on August 9, 2017.
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.
Contact:
Investor Relations
VirnetX Holding Corporation
775.548.1785
ir@virnetx.com
VirnetX, Gabriel Collaboration Suite, Gabriel Secure
Communications Platform and GABRIEL Connection Technology are
trademarks of VirnetX Holding Corporation. Other company and
product names may be trademarks of their respective owners.
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