Monday, March 3, 2014

Virnetx v Apple 2013 Royalty Estimates - Updated

Apple Damages January 1, 2013 - December 31, 2013
Date 3/31/2013 6/30/2013 9/28/2013 12/31/2013
Total Revenue Per Unit
iPhone $ 22,955,000,000 $ 18,154,000,000 $ 19,510,000,000 $ 32,498,000,000
iPad 6,374,000,000 8,746,000,000 6,186,000,000 11,468,000,000
iPod 962,000,000 4,569,000,000 573,000,000 973,000,000
Americas Revenue % 32.23% 40.78% 37.20% 34.90%
Americas Revenue 3/31/2013 6/30/2013 9/28/2013 12/31/2013
iPhone $ 7,397,740,064 $ 7,403,345,412 $ 7,258,457,248 $ 11,340,500,816
iPad 2,054,157,925 3,566,688,277 2,301,425,758 4,001,872,834
iPod 310,025,090 1,863,274,495 213,177,653 339,538,042
Total $ 9,761,923,079 $ 12,833,308,184 $ 9,773,060,659 $ 15,681,911,692
Estimate US Revenue 90% 8,785,730,771 11,549,977,366 8,795,754,593 14,113,720,523
Smallest Saleable $ 7,028,584,617 $ 9,239,981,893 $ 7,036,603,674 $ 11,290,976,418
Unit per Final Judgment
Excluded 20% of Devices Total = $ 34,596,146,602
Page 24
Virnetx .5% Royalty Owed $ 35,142,923 $ 46,199,909 $ 35,183,018 $ 56,454,882
(Jury Verdict %)
Total = $ 172,980,733.01
         
Virnetx .98% Royalty Owed $ 68,880,129 $ 90,551,823 $ 68,958,716 $ 112,909,764
         
      Total = $ 341,300,431.98
Virnetx 1.52 Royalty $ 106,834,486 $ 140,447,725 $ 106,956,376 $ 171,622,842
(VHC Asking For)
Total = $ 525,861,428.35
Assumptions:
Apple does not have a non-infringing workaround
90% US Estimate is close to being accurate, this number could be revised in either direction.
The majority of the money is from products not included in the first trial.
Virnetx is trying to collect this money in post-verdict motions not yet ruled on proving
new devices are the same as already proven infringing devices .  
Conclusions:
There is a substantial of money at stake for both parties. At the .98% rate
will yield a substantial stream of revenue to Virnetx.

1 comment:

  1. The term on-going royalty rate was used in the verdict... Does this make the royalty cumulative meaning (prior infringing sales + current infringing sales) x 0.98% (and obviously any additional sales will be at 0.98%? What is the start date for which sales are included in the on-going royalty rate (e.g., Jan 1, 2013 until present?)? Trying to get a better understanding of the potential amounts owed to VHC today and potential owed in the future. Thanks.

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