A U.S. District Court in San Jose, Calif. upheld the $39.5 million award Finjan Holdings Inc. (FNJN), the cybersecurity and licensing company run by CEO Phil Hartstein, won from Blue Coat Systems Inc.

Blue Coat, based in Sunnyvale, Calif., had argued that the verdict and award should be tossed because Finjan had waited too long to bring its case and that the complaint should have been barred based on the legal doctrines of laches and estoppel.

East Palo Alto-based Finjan welcomed Judge Beth Labson Freeman’s ruling, which rejected Blue Coats’ arguments.

Blue Coat has already indicated to the court it plans to appeal the decision if its motions to toss the ruling were rejected.

Olivia Kim, a partner with Wilson Sonsini Goodrich & Rosati in Los Angeles, who represented Blue Coat, couldn’t be reached for comment.

"The significance of the court's sound rulings regarding our patented technologies should resonate within our industry," said Julie Mar-Spinola, Finjan's chief intellectual property officer, and vice president of legal in a statement. "The industry should take notice of the findings, which we believe, firmly establishes our inventions, as legitimate, patentable, and, therefore, enforceable."

The parties have about 28 days to file post-judgment motions with the District Court, and can file notices of appeal to the Court of Appeals for the Federal Circuit about 30 days after the District Court rules.

"Absent unforeseeable events, based on the trial record and the Court's rulings, we remain confident that the merits of our claims against Blue Coat will be sustained on appeal," Mar-Spinola said in the statement.

In July, Finjan filed a second patent infringement lawsuit against Blue Coat in the U.S. District Court for the Northern District of California, alleging that Blue Coat's new products and services infringe seven Finjan patents.

In particular, Finjan is asserting infringement of U.S. Patent Nos. 6,154,844; 6,965,968; 7,418,731; 8,079,086; 8,225,408; 8,566,580; 8,677,494; four of which are being asserted against Blue Coat for the first time. This matter has also been assigned to Judge Freeman.

Finjan has filed patent infringement lawsuits against FireEye, Proofpoint, Sophos, Symantec, and Palo Alto Networks relating to, collectively, more than 20 patents in the Finjan portfolio.

—To reach the reporter responsible for this story, please contact Dan Lonkevich at 707 318-7899 or dan@thepatentinvestor.com