A Patent Troll May Soon Get 1 Percent of Apple’s iPhone Revenue

Apple

In 2012, Apple won the year’s biggest patent verdict—more than $1 billion against Samsung. The company also lost one of that year’s biggest cases when an East Texas jury ordered it to pay $368 million to a company named VirnetX for infringing patents related to FaceTime and VPN On Demand functions used in iPhones, iPads, and Macs. VirnetX is a company some call a “patent troll” because its only business is now patent enforcement. Then, in March, US District Judge Leonard Davis ordered an ongoing royalty to be paid to VirnetX. The number was downright stunning: 0.98 percent of revenue from iPhones and iPads sold in the US. To no one’s surprise, Apple is fighting tooth and nail to avoid this outcome. A decision published yesterday shows that one creative strategy that Apple tried to use went too far.

Read the full story at Ars Technica.

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