New Edition From Justin ..



VirnetX: A Post-Verdict Update (12/9/2012)

I am issuing a 29-page update to my White Paper on VirnetX. The update is dated December 9, 2012, and is entitled:
VirnetX:  A Post-Verdict Update
The update can be found here:
I thought I would include a couple of graphics from the report as well as the Introduction from the actual report to give you a sense of what I cover.  The first image touches on what I believe is an important concept, the Apple Secure Domain based on VirnetX technology.  The second image is from the Monetization section and highlights the four distinct revenue opportunities for VirnetX.  My goal was to make the update an easier read than the White Paper, so I hope I have accomplished that.  Enjoy the read.

This report updates and expands upon my original White Paper, “Enabling Advanced Communications: How VirnetX Will Profit From Next-Gen Networks”, published in July 2012 and available at There have been many important developments concerning VirnetX since the publication of the White Paper, with the most significant event being the conclusion of the jury trial vs. Apple and a $368.2 million verdict in the company’s favor. VirnetX has also signed settlement and licensing agreements, filed additional patent-infringement lawsuits, and updated its essential patents declaration with standards developing organizations.  In this report I will outline the new information revealed over the last several months and provide analysis on how it affects VirnetX going forward.
In 2010, VirnetX defeated Microsoft and proved it owned the Secure SIP model.  VirnetX’s recent win against Apple now reaffirms my conclusion that VirnetX owns this security model.  In this update I will explain how Apple is using this model to create a proprietary Apple Secure Domain to offer secure real-time communication applications such as FaceTime and iMessage to its customers.  I will also demonstrate how iMessage, which is included in a new lawsuit against Apple, is using VirnetX technology.

After discussing the rollout timing of 4G LTE-Advanced networks, I provide a monetization update that takes into account the recent jury verdict.  My sum-of-parts analysis results in a value of $132 per share.  As more events unfold, I will update my conclusions and model.