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iPhone REUTERS Shannon Stapleton

Court denies Apple's motion to reduce damages against VirnetX

2/27/2013 COMMENTS (0)

By Sayantani Ghosh

Feb 27 (Reuters) - VirnetX Holding Corp, which holds internet security patents, said a federal court has upheld a ruling against Apple Inc in a patent infringement lawsuit and denied the iPhone maker's motion to reduce the $368 million in damages.

VirnetX shares rose 6 percent to $35.91 in morning trading on the American Stock Exchange on Wednesday.

The court ordered Apple to pay $33,561 in daily interest and $330,201 in daily damages up to the final judgment, VirnetX said on Wednesday.

VirnetX was awarded the damages in November after a federal jury said Apple's use of the Nevada-based company's virtual-private-network technology in the FaceTime video-calling application in iPhone, iPod Touch, iPad and Mac computers had infringed the company's patents.

VirnetX, which has a market capitalization of $1.74 billion, accused Apple of infringing four patents.

The U.S. District Court for the Eastern District of Texas, Tyler Division, denied VirnetX's request for a permanent injunction and ordered the companies to negotiate a license in the next 45 days.

"We look forward to negotiating a license with Apple that includes an ongoing royalty agreement," VirnetX Chief Executive Kendall Larsen said in a statement.

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