VirnetX Holding shares jumped 23% following a federal jury's decision to have Apple dish out $368 million for patent infringement.
Getting a taste of its own medicine, Apple saw the court determine that it popular FaceTime app infringed four VirnetX patents. The holding company won $200 million in a settlement from Microsoft over a similar situation back in 2010.
While it's overall a success for VirnetX, it only got half of what it wanted: the company originally sought more than $700 million in damages. The patents infringed upon covered the use of domain-name service to set up virtual private networks.
“This victory further establishes the importance of our patent portfolio,” VirnetX Chief Executive Officer Kendall Larsen said in a statement.
Apple disagrees, arguing it used different technology to build FaceTime. “Apple does not owe money to VirnetX,” Danny Williams, a lawyer for Apple, told the jury. “VirnetX is not entitled to money for things they did not invent. The VirnetX technology, if used, is a small part of very large, complex products.”
Apple is infamous for suing competitors such as Samsung over every imaginable patent infringement under the sun in a bid to destroy Android, which was one of the late Steve Jobs' ultimate goals. The company recently won a $1 billion court battle with Samsung, which validated its aggressive claims to a degree—but a loss such as this one shows that no company is perfect (and neither is the patent system).