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Apple Forced to Pay $625 Million for Patent Dispute

The patents in question cover VPN On Demand, iMessage and Facetime services.

(TNS) -- Apple Inc. was ordered to pay more than $625 million in damages to Nevada-based VirnetX Inc. as a ruling in a patent infringement case tried in the Tyler, Texas-based federal court.

The jury reached a verdict Wednesday more than three years after VirnetX won its original lawsuit. The appeal played out in the United States District Court for the Eastern District of Texas in Tyler.

VirnetX attorney Brad Caldwell, of Caldwell Cassady, is a Tyler native, who now practices in Dallas. He previously won a $533 million settlement against Apple in March 2015 in the same court, as well as a 2012 case.

"The basis was infringement of four of VirnetX's patents related to the establishment of virtual private networks and secure communication links," Caldwell said.

The patents in question cover VPN On Demand, iMessage and Facetime services.

The jury ordered compensation of more than $334.9 million for patent violations of VirnetX's VPN On Demand feature.

The jury found Apple had infringed every claim brought forward by VirnetX, and the settlement includes damages awarded to VirnetX based on accrued royalties from the original infringement lawsuit Caldwell, Cassady and Curry won against Apple in 2012, according to a news release from VirnetX.

The compensation for royalties came to an additional $290.7 million.

"We are thankful for the jurors' hard work and attention in this case and for reaching a just verdict," Cassady said. "The jury saw what we have been saying all along. Apple has been infringing VirnetX's patented technology for years."

After the ruling, Apple filed a motion for mistrial, but was denied, according to court documents.

Caldwell said he does expect Apple to appeal.

"We are very happy for VirnetX. Its employees are our friends," Caldwell said. "We have enjoyed watching the development of their products and their technologies over the years. My friends and I have been blessed to represent them for around seven years, and we are proud to have helped them get to this day.

©2016 Tyler Morning Telegraph (Tyler, Texas) Distributed by Tribune Content Agency, LLC.