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U.S. Court of Appeals Rejects Methods Used in Determining Hypothetical Royalties

24 September 2014

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United States

A U.S. Court of Appeals for the Federal Circuit has recently vacated damages against Apple based on the use of insufficient methods for determining hypothetical royalties. The case, VirnetX Inc. and Science Application International Corporation (SAIC), v. Cisco Systems and Apple Inc., was in regard to certain patents owned by VirnetX used in Apple's products, specifically the FaceTime video call feature. In the original trial, Apple was found to have infringed on VirnetX's patents and VirnetX was awarded $368 million in damages based on a hypothetical royalty amount. Apple appealed, and while the appeals court upheld most of the earlier...