Microsoft settles with VirnetX, to pay $200 mn

By : |May 17, 2010 0

NEW YORK, USA: Microsoft Corp will pay $200 million to VirnetX Holding Corp and obtain a patent license to settle litigation accusing it of infringing two patents for communicating over the Internet.

Both companies announced the settlement two months after a federal jury in Tyler, Texas on March 16 ordered Microsoft to pay $105.75 million to VirnetX for willful infringements, an amount that could have been tripled.

The settlement calls for Microsoft to take a license to VirnetX patents for Microsoft products. Other aspects of the settlement and license are not being disclosed.

Based in Scotts Valley, California, VirnetX develops software and technology for communications over the Internet.

The company lost $40.59 million from its inception on Aug. 2, 2005 through March 31, 2010, with revenue from royalties totaling $255,685, a May 7 regulatory filing shows.

Microsoft is based in Redmond, Washington, and is the world’s largest software maker.

VirnetX shares closed Friday at $6.11 on the American Stock Exchange. Microsoft closed Friday at $28.93 on the Nasdaq.

The case is VirnetX Inc v. Microsoft Corp, U.S. District Court, Eastern District of Texas, No. 07-00080.

No Comments so fars

Jump into a conversation

No Comments Yet!

You can be the one to start a conversation.