Internet security company suing Apple for $708 million for paten - KYTX CBS 19 Tyler Longview News Weather Sports

Internet security company suing Apple for $708 million for patent infringement

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EAST TEXAS (TYLER MORNING TELEGRAPH ) - A company that says it invented a way to provide secure Internet connections on computers, tablets and smart phones is asking a federal jury to award it $708 million in royalties from Apple.

Evidence began Wednesday in the patent infringement trial in U.S. District Judge Leonard Davis' courtroom in the United States District Court Eastern District of Texas. VirnetX filed the lawsuit in the Eastern District alleging that Apple began using its invention, which was patented in 2000, on its iPhone and iPad products, Virnetx attorney Douglas Cawley said.
Dr. Bob Short, who works for VirnetX, along with several others, developed an application known as Gabriel. When someone types in a domain name for a website, Gabriel intercepts it to see if it is secure, he said. If the website is secure, Gabriel creates a Virtual Private Network, which can be used on a smart phone or a tablet, Short said Wednesday.

It is this invention which Short alleges Apple uses in its iPhone and iPad products. "I would like to work out a reasonable license with Apple if they would give us an avenue," Short said.

Eric Albritton, a Longview attorney who is one of several attorneys representing Apple, said Wednesday in his opening statement that the company's success came from its own hard work. The Virtual Private Network and FaceTime, which allows video calling from an iPhone, "has nothing to do with them," Albritton said about VirnetX.

"The issue in this lawsuit comes solely down to determining whether the website is secure. They want $700 million for our hard work," Albritton said.

The trial is expected to continue into next week.
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