updated 01:18 pm EDT, Fri April 5, 2013
New firmware expected later this month
A forthcoming version of iOS will change the way the OS handles VPN connections, according to a support document on Apple's website. On devices with VPN On Demand, the "Always" setting will instead behave as if it were "Establish if needed." In essence, VPN On Demand will only be established if iOS can't resolve the DNS name of a host. The new firmware is scheduled to appear sometime this month.
Apple explicitly cites a VirnetX court victory as the reason for the change. The company scored a $368 million judgment against Apple, having accused it in November 2011 of violating VPN patents via FaceTime. VirnetX has also targeted a number of other corporations with patent lawsuits, but not always successfully.