DNS - Microsoft to Pay $200 Million to VirnetX for Patent Infringement; DNS at Stake

Microsoft (News - Alert) Corporation will pay $200 million to VirnetX Holding Corporation in order to settle patent infringement lawsuits brought by VirnetX in federal court in Texas. The cases related to virtual private network technology.

According to the terms of the settlement, both lawsuits will be dismissed and Microsoft takes a license to the VirnetX (News - Alert) patents for Microsoft's products.

Other details on the settlement and license were not disclosed.

'We are pleased to work with VirnetX to bring these cases to a successful resolution through this settlement,' Tom Burt, deputy general counsel of Microsoft Corporation, said in a statement released this week. 'We look forward to VirnetX's continued progress as it develops its technologies.'

'This agreement highlights the need for VirnetX's Secure Domain Name Initiative, and we believe that this successful resolution of our litigation with Microsoft will allow us to focus on the upcoming pilot system that will showcase VirnetX's automatic Virtual Private Network technology,' said Kendall Larsen (News - Alert), CEO and chairman of VirnetX Holding Corporation. 'We look forward to our continued work with our Secure Domain Name Initiative partners in that effort.'

In a 2007 lawsuit, VirnetX alleged that Microsoft infringed on two of its patents by including virtual private network, VPN, technology in Microsoft's Windows and Office Communications Server products.

In March 2010, a jury sided with VirnetX and awarded the company $105,750,000 after it deliberated on the patent infringement case brought against Microsoft.

Also in March, VirnetX filed a new motion against Microsoft alleging patent infringement by Microsoft's Windows 7 and Windows Server 2008 R2 software products.

In March, Larsen issued a statement after the United States Patent and Trademark Office ruled in VirnetX's favor. 'We believe in the validity of the patents in our suit with Microsoft and are confident that the USPTO will uphold them,' Larsen said at the time.

VirnetX Holding Corporation is an Internet security software and technology company that is commercializing its patented products, developed from work done for the Central Intelligence Agency. The company has over 48 U.S. and international patents.

Ed Silverstein is a contributing editor for TMCnet's InfoTech Spotlight. To read more of his articles, please visit his columnist page.

Edited by Michael Dinan