Judge Confirms Jury Finding of Willful Infringement of Veracode Patent

Injunction prohibits Appthority’s continuing use of infringing technology

BURLINGTON, Mass. – October 22, 2015 Veracode, a leader in protecting enterprises from today’s pervasive web and mobile application threats, prevailed in its patent infringement lawsuit against Appthority in the U.S. District Court of Massachusetts. The Court recently ruled on post-trial motions, confirming the jury verdict that Appthority ‘willfully’ infringed a Veracode patent related to binary static analysis. The Court also imposed a permanent injunction against Appthority’s infringing use of Veracode’s patented technology, rejecting Appthority’s argument that the injunction should apply only to a limited number of specific types of program errors detected by its technology.  Accordingly, the court’s ruling makes clear that the changes to its technology that Appthority detailed to the Court are not sufficient to avoid infringement of Veracode’s patent and the scope of the Court’s injunction.

The ruling and the injunction also prohibit Appthority from using any mobile application reports that were generated using infringing technology and that were added to Appthority’s database after March 31, 2014.  The injunction prohibits Appthority from adding any reports to its database if they are generated using the infringing technology. The Court’s ruling gives Appthority until October 30th to modify its platform to make it non-infringing.

The ruling also requires that Appthority and its partners who are reselling Appthority’s infringing technology to notify all customers who have purchased infringing products and services of the terms of the injunction and to provide a copy of the injunction to those customers. To view a copy of the permanent injunction or ruling, please visit Veracode's Appthority Ruling and an Alternative Solution.

“Our ability to provide the best application security solutions to the world will be vigorously protected to ensure that our customers benefit from the most robust and innovative technology,” said Bob Brennan CEO at Veracode. “Veracode’s cloud-based app reputation service provides continuously-updated security intelligence to leading enterprise mobility platforms like MobileIron, AirWatch and IBM Fiberlink. The service taps information about hundreds-of-thousands of iOS and Android apps that have been assessed using Veracode’s static and behavioral analysis technology. Using the app reputation service, enterprises can roll out a BYOD program that includes both preventive and detective controls to keep corporate data safe.”

The ruling also affirmed the jury’s prior award of damages to Veracode and added interest to that amount, bringing the total amount owed by Appthority to more than $1 million.

The Honorable Douglas P. Woodlock issued the ruling on September 30, 2015. Veracode was represented by Goodwin Procter.

Veracode is offering a transition program for affected Appthority customers and partners. Details can be found here.