Apple To Pay Millions In Damages Over Patent Battle And False Claims

Apple is sued by so-called “patent troll” VirnetX.

On Wednesday, the lawsuit, whose trial began on January 25, 2016, between Apple and VirnetX has finally reached to its conclusion with Apple getting a verdict to pay $625 million in form of damages to Zephyr Cove, Nevada based firm; Virnet X Holding Corporation. The tech giant has been found guilty of willfully using the plaintiff’s intellectual property in its Apple’s FaceTime, iMessage, and VPN services. The legal damages are more than the plaintiff’s reported claim of $532 million in form of damages. The trial was carried out in Tyler, Texas.

The defendant was disappointed with the decision. The statement issued by the defendant stated, “We are surprised and disappointed by the verdict. Cases like this simply reinforce the desperate need for patent reform.” The company has also announced to file an appeal. It further appealed to U.S. District Judge Robert Schroeder to pronounce the foregoing event as “mistrial.” The $534 billion company persisted that attorney has misled the jury. The judge’s ruling on the matter will be out at an unknown time.

However, the Nevada based company is overjoyed by the decision. Its attorney Jason Cassady who is from Caldwell Cassady & Curry, a Dallas-based firm, has released the following statement: “We are thankful for the jurors’ hard work and attention in this case, and for reaching a just verdict. The jury saw what we have been saying all along: Apple has been infringing VirnetX’s patented technology for years.”

Suing big organizations is not new for “patent troll” VirnetX. Earlier in 2010, it sued Microsoft Corporation over VPN technology and managed to secure an amount of $200 million. Later in 2014, it sued Microsoft again over some issues involving Skype and claimed damages of $23 million.

Last month, in January, “the most valuable business” posted cash balance of $216 billion. Therefore, the amount of penalty is not likely to have any great impact on organization’s financial position nor it will adversely affect its stock. Nevertheless, according to Reuters, the “price is high for a patent case.”

In addition to it, Apple’s image was also tarnished when a regular customer, Gareth Cross, sued it over the claims that the Apple Watch is “impact-resistant.” Both lawsuits may not have huge financial implications on the company but it has cost some hustle to it.

The iPhone maker has awarded Mr. Cross around $489 as a refund of his purchase and additional expenses of $618. Mr. Cross stated that within a fortnight after purchasing his Apple Watch, its glass cracked. He claimed that watchmaker has violated the country’s law. In order to avoid the proposed misrepresentation, it will change its marketing practices and in the future, it will not make the “impact-resistant” claim. The plaintiff, however, wanted nothing apart from damage compensation. He stated that he will buy the Watch again and looking forward to next-gen device.

Moreover, Apple has yet again taken its position of most valuable organization and has surpassed Alphabet. At the market close on Wednesday, Apple stock price stood at $96.35.