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Apple Attacks VirnetX s Trial Strategy In $503M Patent Verdict
Law360 (December 17, 2020, 6:08 PM EST) Apple asked a Texas federal judge Thursday to reduce a $502.8 million jury verdict for VirnetX in a network security patent case, arguing VirnetX introduced evidence at trial of other licensing agreements that didn t involve comparable technology, causing the jury to award an inflated royalty price per device.
Apple Inc., which is requesting either a verdict reduction or a new damages trial in the case, told U.S. District Judge Robert W. Schroeder III during virtual oral arguments that VirnetX Inc. s evidence that six companies paid an average royalty price of $1.20 per unit was not legally sufficient to support the jury s.
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A patent holder that prevails in a patent infringement suit is entitled to either lost profits or a reasonable royalty. A reasonable royalty calculation often implicates the infringing product s revenues (the royalty base ).
1 The smallest saleable patent-practicing unit ( SSPPU ) is a legal doctrine that restricts the royalty base that a patent holder can use in its reasonable royalty calculation. Two recent cases may shape the application of this doctrine in the patent infringement context and the SEP licensing context. Both patent holders and patent-practicing organizations should take note of and monitor developments.