VirnetX Holding Corporation (NYSEMKT:VHC) lost 44.37% of its share price after a federal appeals court overturned the $368 million damage award that the company won against Apple Inc (NASDAQ:AAPL). VirnetX closed at $8.30 after losing $6.62 in the day’s trading.
The U.S. Court of Appeals for the Federal Circuit in Washington overturned the damages considering them unrealistic and issued an order to review whether Apple Inc (NASDAQ:AAPL) infringed the patents in their FaceTime feature, although the court agreed that Apple infringed other patents in its VPN on Demand service. VPN is the primary reason for dispute among the two companies.
VirnetX Holding Corporation (NYSEMKT:VHC) was to receive $368.2 million in patent infringement damages after a jury court favored the company in 2012 and held Apple Inc (NASDAQ:AAPL) liable for using four patents in achieving secure communications.
VirnetX Holding Corporation (NYSEMKT:VHC) chief executive, Kendall Larsen, said,
“While we are disappointed that the Federal Circuit has vacated portions of the judgment for further proceedings, we are bolstered by the fact that the patents were again found valid and that it was confirmed that Apple’s VPN on Demand functionality infringes.”
Earlier, VirnetX Holding Corporation (NYSEMKT:VHC) accused Apple Inc (NASDAQ:AAPL) for using its patent technologies in its FaceTime service for video calling. It involved use of a functionality that translates domain name to ensure whether a secure link is achievable or not. The Circuit Judge overturned jury’s decision of VirnetX’s patents not requiring anonymity and sent the case for reconsideration. On the contrary, the judge did found Apple infringing two other patents in using domain name to trigger communication links in its VPN on Demand service.
VirnetX Holding Corporation (NYSEMKT:VHC) makes its revenue from patent licensing.
This article has been written by Prakash Pandey.