Apple SEC filing reveals strategy with respect to VirnetX ruling

On August 11, 2010, VirnetX, Inc. filed an action against Apple alleging that certain of its products infringed on four patents relating to network communications technology. On November 6, 2012, a jury returned a verdict for VirnetX, and awarded damages of $368 million.

In the Contingencies portion of Apple’s most recent 10-Q, they state "The Company is challenging the verdict, believes it has valid defenses and has not recorded a loss accrual at this time."

Still awaiting the results of any appeal of their Samsung court victory (originally set at $1.05B, but later reduced to $599M), the Company also has not yet recognized that award.