Recode reports that a federal appeals court today threw out a previous ruling granting VirnetX Holding Corp $368.2 million in damages in its long-running patent lawsuit against Apple:

Apple had appealed a November 2012 jury finding that it infringed VirnetX’s patents for virtual private network, or VPN, technology through the FaceTime feature on its iPhone, iPod Touch and iPad products, as well as on its Mac computers… While agreeing that some patents were infringed, the appeals court said the verdict was tainted by incorrect jury instructions from the trial judge on how to calculate damages, and that the error was not harmless.

The case previously resulted in Apple changing the behaviour of its VPN On Demand feature in iOS after it lost the initial patent case to VirnetX.

The case isn’t over yet, however, as both companies will return to U.S. District Court in Tyler, Texas work out what damages Apple will ultimately be on the hook for. VirnetX shares were down significantly today following the news.

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