VirnetX Inc. v. Apple Inc., No. 17-1591 (Fed. Cir. 2019)Annotate this Case
VirnetX appealed the Patent Trial and Appeal Board's decision related to three inter partes reexaminations maintained by Apple and Cisco. In this case, the PTO concluded that Apple was not barred from maintaining its reexams by the estoppel provision of the pre-America Invents Act (AIA) version of 35 U.S.C. 317(b), and the Board affirmed the examiner's determination that the claims of U.S. Patent Nos. 7,418,504 and 7,921,211 are unpatentable as anticipated or obvious over the prior art of record. The '504 and '211 patents describe systems and methods for establishing a secure communication link between a first computer and a second computer over a computer network, such as the Internet.
The Federal Circuit held that there has been a final decision entered against Apple that it has not sustained its burden of proving invalidity, and thus section 317(b) estoppel applied to the Apple reexams. Therefore, the court vacated the Board's decisions in the Apple reexams with respect to claims 1–35 of the '504 patent and claims 36–59 of the '211 patent and remanded with instructions to terminate. The court affirmed the Board's decision on all remaining claims of both patents in the Apple reexam not subject to section 317(b) estoppel and fully affirmed the Board's decision regarding the claims of the '211 patent in the Cisco reexam.