Recent backtrack on VPN change could indicate talks or appeal

Apple's recent "partial backtrack" on a plan to deprecate the "always on" feature in its implementation of VPN could indicate possible negotiations with VirnetX, which won a $368 million District Court ruling that Apple was violating its patents. However, new information discovered by Computerworld in an SEC Form 10-Q filing suggest that Apple is also be preparing to appeal the ruling. Documents filed by the iPhone maker say it will not yet record the court's award as a loss, because the company "is challenging the verdict."

In addition to the $368 million award, the court also ordered Apple to pay VirnetX $330,211 per day until a settlement is reached, but the company filed a motion on March 28 arguing that the case has not yet officially ended. The Apple says that VirnetX's "request for an ongoing royalty remains to be decided" and there for the judgements in the case are "not yet final or appealable."

Apple told investors in its SEC filing that it is going to challenge the verdict, "believes it has valid defenses and has not recorded a loss accrual at this time." Although the company was refused a request for both a lessening of damages and a new trial by the original court, it still has legal options for appeal. Apple originally lost the case in November, but the court reaffirmed its ruling late in February, giving the two parties a 45-day deadline to find a settlement before the financial penalty would kick in.

by MacNN Staff