If Apple intends to use VirnetX’s security solutions in their LTE 4G iPhones and iPads they are going to have to settle sooner with VirnetX rather than latter even though they indicated that they do not intend to introduce a 4G enabled device until next year.
Apple has allegedly been ripping off VirnetX’s Virtual Private Network in their earlier generation of devices as Kendall Larsen explained in his Wall Street Transcript interview in December: “And when large companies use our technology and then we need to work out a detailed settlement, that's kind of what we're doing with the next set, like with Cisco and Apple. I can tell you it's really the Apple handsets, such as iPhones and iPads…”
Building an LTE phone or device would require use of a chipset from a supplier like Qualcomm Inc. There is design and manufacturing lead time that will force Apple’s hand in the VirnetX suit. If Apple goes ahead and designs VHC technology into those chips they are going to leave themselves extremely vulnerable.
It is settle or risk an injunction next year when the suit goes to trial and Apple is ready to launce its next generation 4G devices.
In the same interview Larsen goes on to state: “Really what we want to do is put those (suits) behind us quickly and settle them out, like we did with Microsoft, and move on to our lion's share of our business value, which is in the incentive licensing. So as we put out technology licensing and patent licensing to new vendors and to new markets, that's really the shift that we're in the process of taking right now. So we would like to put these environments that we talked about earlier behind us and get going on this new licensing practice.”
That, I believe, is how the Apple suit is going to play out.
The revenue stream will be enormous!