VirnetX Receives District Court’s Final Judgment Affirming Jury’s Verdict of $502.6 Million
Final Judgment of $1.20 Per Infringing Apple Device Plus Interest, Costs and Sunset Royalty
ZEPHYR COVE, Nevada.,– August 31, 2018 – VirnetX™ Holding Corporation (NYSE AMERICAN: VHC), an Internet security software and technology company, announced today that on August 30, 2018, the United States District Court for the Eastern District of Texas, Tyler Division, entered a Final Judgment and issued its Memorandum Opinion and Order (“Order”) regarding post-trial motions resulting from the prior $502.6 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 affirmed the jury’s verdict of $502.6 million and granted VirnetX’s motions for supplemental damages, a sunset royalty and the royalty rate set at $1.20 per infringing iPhone, iPad and Mac products, pre-judgment and post-judgment interest and costs.
In the Order, the Court denied Apple’s Omnibus Motion for Judgment as a Matter of Law under Rule 50(b) and for a New Trial.
“We are extremely pleased with the Court’s Final Judgment of $502 million affirming the jury’s verdict of $1.20 per infringing device and granting us supplemental damages, a sunset royalty, interest and costs. This is the fourth time a jury has unanimously found in our favor against Apple and the patents in this suit have been found not invalid by the Federal Court of Appeals,” said Kendall Larsen, VirnetX CEO and President. “This Final Judgment is warranted due to the large amount of infringing Apple devices. 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.”
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 and appeals (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, 2018. 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
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