VirnetX shares rise on court ruling versus Apple
LOS ANGELES (AP) — Shares of VirnetX Holding Corp. rose Wednesday after the developer of secure Internet communications technology said that a court rebuffed an attempt by Apple Inc. to reverse a sizable judgment in a patent lawsuit that ended in VirnetX's favor.
THE SPARK: VirnetX said that a federal court in Texas had upheld a $368 million jury award after it sued Apple Inc. for infringing on four of its patents with its FaceTime video-calling function. VirnetX said the court denied Apple's request for a new trial and a motion to reduce the damages. The company first announced the award in November.
The court also denied VirnetX's request for a permanent injunction on the sale of certain Apple products and ordered both sides to come to a licensing agreement for future use of its technology in the next 45 days, VirnetX said.
"We are extremely pleased with the court's order in our suit against Apple," said VirnetX CEO Kendall Larsen in a statement. "We look forward to negotiating a license with Apple that includes an ongoing royalty agreement."
An Apple spokesman declined to comment.
Apple has the opportunity to appeal but did not say if it would do so.
THE BIG PICTURE: Zephyr Cover, Nev.-based VirnetX derives its revenue by licensing its patents, including those that cover its Gabriel connection technology. Last month, it announced a patent licensing deal with subsidiaries of Siemens AG for an undisclosed amount.
In the three months through September it posted a net loss of $4.7 million, or 9 cents per share, on revenue of $368,000. Based on Wednesday's trading price, it has a market capitalization of $1.82 billion.
SHARE ACTION: VirnetX shares rose $1.40, or 4. percent, to $35.36 in afternoon trading. The stock has traded in a 52-week range of $19.13 to $41.93.