VirnetX Receives PTAB Decisions

Rhea-AI Summary

On July 14, 2020, VirnetX Holding Corporation (NYSE AMERICAN: VHC) announced that the PTAB ruled certain claims of its patents U.S. 6,502,135 and U.S. 7,490,151 as unpatentable in IPR2015-01046 and IPR2015-01047. Claims 1, 3, 4, 7, 8, 10, and 12 of the '135 patent, along with claims 1, 2, 6-8, and 12-14 of the '151 patent, were affected. The company plans to appeal these findings and is committed to exploring options for rectification. VirnetX is known for its patented technology in secure communications, with a portfolio comprising over 190 patents worldwide.

Positive

• VirnetX possesses a substantial patent portfolio with over 190 patents which may create future licensing opportunities.
• The company intends to appeal the PTAB's decisions, indicating ongoing commitment to protect its intellectual property.

Negative

• PTAB's ruling declared significant claims of two key patents as unpatentable, potentially undermining the company's competitive position.

ZEPHYR COVE, Nev., July 14, 2020 /PRNewswire/ -- VirnetX™ Holding Corporation (NYSE AMERICAN: VHC), an Internet security software and technology company, announced today that the United States Patent and Trademark Office's Patent Trial and Appeal Board ("PTAB") issued decisions regarding the patentability of certain claims of U.S. Patent Nos. 6,502,135 and 7,490,151 in inter partes review proceedings IPR2015-01046 and IPR2015-01047.  In IPR2015-01046, the PTAB found claims 1, 3, 4, 7, 8, 10, and 12 of the '135 patent to be unpatentable.  In IPR2015-01047, the PTAB found claims 1, 2, 6-8, and 12-14 of the '151 patent to be unpatentable.  Both decisions are subject to, inter alia, appeal to the Court of Appeals for the Federal Circuit. 

"We strongly disagree with the PTAB's findings in the decisions issued today," said Kendall Larsen, VirnetX CEO and President.  "We intend to consider all available options to rectify the PTAB's decisions."

About VirnetX

VirnetX Holding Corporation is an Internet security software and technology company with patented technology for secure communications including 4G LTE and 5G security. The Company's software and technology solutions, including its secure domain name registry and Gabriel Connection Technology™, are designed to facilitate secure communications and to create a secure environment for real-time communication applications such as instant messaging, VoIP, smart phones, e-Readers and video conferencing. The Company's patent portfolio includes over 190 U.S. and foreign granted patents/validations and pending applications. For more information, please visit http://www.virnetx.com/.

Forward-Looking Statements

Statements in this press release that are not statements of historical or current fact, including the statement regarding the the expected benefits of and potential for revenue resulting from  VirnetX's (the "Company") collaboration with PEDLOX Inc., may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are based on expectations, estimates and projections, and certain assumptions made by management and involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements, including but not limited to,  including but not limited to (1) the outcome of any legal proceedings that have been or may be initiated by the Company or that may be initiated against the Company, including pending and future inter partes review proceedings in the Patent and Trademark Office and appeals therefrom; (2) the ability to capitalize on patent portfolio and generate licensing fees and revenues; (3) the ability of the Company to be successful in entering into licensing relationships with its targeted customers on commercially acceptable terms, including through its relationship with PEDLOX; (4) potential challenges to the validity of the Company's patents underlying its licensing opportunities; (5) the ability of the Company to achieve widespread customer adoption of the Company's Gabriel Communication Technology™ and its secure domain name registry; (6) the level of adoption of the 3GPP Series 33 security specifications; (7) whether or not the Company's patents or patent applications may be determined to be or become essential to any standards or specifications in the 3GPP LTE, SAE project or otherwise; (8) the extent to which specifications relating to any of the Company's patents or patent applications may be adopted as a final standard, if at all; and (9) the possibility that Company may be adversely affected by other economic, business, and/or competitive factors.  The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission, including those under the heading "Risk Factors" in the Company's Annual Report on Form 10-Q filed on May 11, 2020 and subsequent filings with the Securities and Exchange Commission, as applicable. Many of the factors that will determine the outcome of the subject matter of this press release are beyond the Company's ability to control or predict.  Except as required by law, the Company is under no duty to update any of the forward-looking statements after the date of this press release to conform to actual results.

Contact:
Investor Relations
VirnetX Holding Corporation
415.505.0456
ir@virnetx.com

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SOURCE VirnetX Holding Corporation

FAQ

What recent decision did PTAB make regarding VirnetX's patents on July 14, 2020?

PTAB found certain claims of VirnetX's patents, U.S. Patent Nos. 6,502,135 and 7,490,151, to be unpatentable in specific inter partes reviews.

How did VirnetX respond to the PTAB's findings?

VirnetX expressed strong disagreement with the PTAB's findings and plans to explore all available options to appeal the decisions.

What implications do the PTAB decisions have for VirnetX (VHC)?

The unpatentability of key claims could weaken VirnetX's competitive standing and impact potential licensing revenue.

How many patents does VirnetX hold?

VirnetX's patent portfolio includes over 190 granted patents and pending applications worldwide.