VirnetX Files Petition for Rehearing and Rehearing En Banc with U.S. Court of Appeals for Federal Circuit
Requests Restoration of Jury Verdict Against Apple in Full
ZEPHYR COVE, Nev., Oct. 17, 2014 /PRNewswire/ -- 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."
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.
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