Skip to main content

VirnetX Files Petition for Rehearing and Rehearing En Banc with U.S. Court of Appeals for Federal Circuit

By October 21, 2014Press Releases

Requests Restoration of Jury Verdict Against Apple in Full

ZEPHYR COVE, Nevada.,– October 17, 2014, – VirnetX™ Holding Corporation (NYSE MKT: VHC), an Internet security software and technology company, announced today that, on October 16, 2014, it filed a petition with the United States Court of Appeals for the Federal Circuit, requesting a rehearing and rehearing en banc of the Federal Circuit’s September 14, 2014, decision concerning VirnetX’s litigation against Apple Inc. In its petition, VirnetX is asking the court to rehear its decision with respect to damages and affirm the district court’s damages award against Apple in full because the Federal Circuit’s decision is contrary to the patent statute and Supreme Court precedent. VirnetX is also asking the Federal Circuit to reinstate the jury’s award that Apple infringed the ’504 and ’211 patents on the basis that the district court correctly construed the claim term “secure communication link.”

In its September 14th decision, the Federal Circuit affirmed the jury’s finding that all 4 of VirnetX’s patents are valid, confirmed the jury’s infringement finding with respect to VPN on Demand for all but one of the asserted claims, and confirmed the district court’s decision to allow VirnetX’s licenses and royalty rate evidence in connection with a damages determination. The court, however, changed the district court’s claim construction of “secure communication link” pertaining to the ’504 and ’211 patents and vacated the jury’s damages award. The court remanded for further proceedings with respect to infringement by FaceTime and the damages award. VirnetX is seeking rehearing on the claim construction of “secure communication link” in part because the district court had adopted Apple’s proposed construction of that term and therefore Apple waived its right to appeal the construction. VirnetX is also asking the court to rehear its decision to remand for further proceedings with respect to damages.

“We respectfully believe the Court of Appeals for the Federal Circuit erred in certain parts of its decision and are asking it to further review its decision,” said Kendall Larsen, VirnetX CEO and President. “We look forward to readdressing the decision with the court and remain confident about the strength of our arguments regarding restoration of the jury’s damages award.”

 

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, smartphones, eReaders and video conferencing.  The Company’s patent portfolio includes over 80 U.S. and international patents with 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 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; (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 Quarterly Report on Form 10-Q filed with the SEC on August 8, 2014.  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:
Greg Wood
VirnetX Holding Corporation
775.548.1785
greg_wood@virnetx.com

 

VirnetX and GABRIEL Connection Technology are trademarks of VirnetX Holding Corporation. Other company and product names may be trademarks of their respective owners.