In this case, VirnetX, a company of 14 employees which makes its revenue by licensing patents to other companies sued Apple, the multi-billion dollar corporation, for over $625 million for patent infringement. Specifically, they argue that iMessage and FaceTime violate patents which they own. It is surprising to note that VirnetX does not the sole owner or creator of these patents, in fact, the company bought the patents in question from Science Applications International Corporation. VirnetX has successfully trolled other major corporations in the past, including Microsoft.
Implications for Apple:
While Apple is a multi bilion dollar company, it still must waste valuable resources and deal with patent trolls such as VirnetX. It successfully appealed the last lawsuit filed by VirnetX and has plans to do so yet again. The company has also revised its code in the meantime so that it does not violate those patents in question in iMessage and FaceTime.
Implications for Patents:
While this case in particular may not affect Apple's business ventures in the long term, this decision sets a bad precedent for further cases in patent trolling. VirnetX's stock price doubled and this is seen as a big win for the trolls. The appeals process may change things--but in the meantime patents, which often encourage innovative ideas, are now being misused.
Sources:
- http://www.bloomberg.com/news/articles/2016-02-03/virnetx-gets-625-6-million-in-patent-trial-against-apple
- http://money.cnn.com/2016/02/04/technology/apple-patent-lawsuit-virnetx/
- http://www.engadget.com/2016/02/03/apple-to-pay-virnetx-in-lawsuit/
Hey Siddharth,
ReplyDeleteI really like how you structured your blog, with the different sections. This enables myself and your other blog fans to understand the case clearly and how the case effects both companies. I also like how you include the implications for patents section, which outlines how patent trolls are using the laws to abuse their power. I like how you mention VirnetX stock doubled, making investing in patent trolls a lucrative options for opportunistic investors. I look forward to reading your updates about the case.
Best,
Ryan
Hey Siddharth,
ReplyDeleteI liked the detail you provided with the company's background and other similar lawsuits they've started. It's good to have a solid background in a lawsuit, which is what I got from your post. Looking forward to reading more!
Best,
Aditya
Hi Siddharth,
ReplyDeleteI like how you structured the contents of your briefing to make it clear and concise. I agree that it's a waste of valuable resources for Apple to deal with this case which seem unfair to most large conglomerate tech companies. I also wonder if it should be their responsibility to start working on these loopholes that allow patent trolls to sue.