Microsoft Settles with VirnetX for $200 Mln

microsoft loses 106 patent case to virnetx logo

After a Texas jury ordered Microsoft to pay over $100 million to VirnetX for infringing on patents related to virtual private network (VPN) technology in Windows, Microsoft has announced it will be paying VirnetX some $200 million to settle two lawsuits between the companies over the technology. Under the deal, the $200 million payment will be a one-time thing, but Microsoft says other components of the deal will not be disclosed, so there’s no word on whether Microsoft is paying VirnetX royalties going forward so it has continued access to the patents.

“We are pleased to work with VirnetX to bring these cases to a successful resolution through this settlement,” said Microsoft corporate VP and deputy general counsel Tom Burt, in a statement. “We look forward to VirnetX’s continued progress as it develops its technologies.”

VirnetX originally sued Microsoft way back in 2007; earlier this year, VirnetX files a new lawsuit claiming Windows 7 and Windows Server 2008 also infringed on its patents.

The $200 million settlement may be a bargain for Microsoft, depending how any undisclosed royalty agreements work out: the $105.75 million that that Texas jury awarded in damages to VirnetX could have been tripled by the case judge if Microsoft’s infringement was found to be willful.

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