VirnetX Holding Corp (VHC)

[solarity]

The Rule 36 affirmation by the CAFC pretty much ends the "Apple 3" litigation. Also ends the "Apple 4" litigation as the appellate issues are identical in both cases. The so-called "race to finality" between the PTAB and the Circuit Court is going to be won by the Circuit Court and all the IPR and reexams will be tossed. The result is that Apple is going to transfer a shipload of cash to VHC sometime in the next 6 to 9 months.

This CAFC decision should mark the beginning of serious licensing income for VHC given that the endless litigation and uncertainty associated with it is now gone. This uncertainty has kept potential licensees on the sidelines waiting to see if VHC actually had a patentable product. The courts confirmation that $1.20 per iPhone is a fair and reasonable royalty is just freakin enormous.

All 3 of the judges on the CAFC panel expressed considerable frustration and concern with the way the PTAB handled this case and they will undoubtedly remand the IPR's and reexams back for additional hearings or kill them entirely. Either way VHC wins.