VirnetX v. Apple is a nonprecendential case decided on November 22, 2019 on appeal from the Eastern District of Texas. The district court entered summary judgment for plaintiff VirnetX on invalidity, determining that defendant Apple was precluded from pressing its proposed invalidity challenges because of previous litigation between the parties. The jury then found that Apple’s products infringed all asserted claims of VirnetX’s four asserted patents and awarded VirnetX $502,567,709 as a reasonable royalty. Following trial, the district court denied Apple’s motion for JMOL. Apple appealed.
The Federal Circuit affirmed the determination that Apple is precluded from making certain invalidity arguments, affirmed that Apple infringed two of four patents, reversed the judgment that Apple infringed the two other patents, and remanded the case for proceedings on damages.
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“The jury’s verdict provided that VirnetX was entitled to a damages award of $502,567,709.00 but did not indicate which portions of the award were allocated to which patents.” Because the Federal Circuit affirmed infringement as to some patents and reversed as to other patents, there remained a question “whether a new trial must or should be held because of the reduced basis of liability.” “[W]here the jury rendered a single verdict on damages, without breaking down the damages attributable to each patent, the normal rule would require a new trial as to damages.” The Federal Circuit did not receive full briefing on whether this is a case in which a new trial on damages is unnecessary. Although plaintiff’s expert testified that the adopted per-unit royalty rate applied to both sets of infringement, “the jury did not have to decide that issue.” So the Court remanded to the district court “to consider in the first instance relevant aspects of whether to hold a limited damages-only retrial given the reduced basis of liability.”