Microsoft Settles Patent Dispute With VirnetX

Microsoft’s been having a tough time with its patent disputes lately. It’s still mulling its dwindling options in the i4i case, and now it’s agreed to shell out licensing fees for the intellectual property in two patents covering technology used in virtual private networks (VPN).

Under the settlement with VirnetX, Microsoft said it will pay a one-time fee of $200 million, and has agreed to license the intellectual property described in the contested patents.

Datamation has the details of Microsoft’s patent-infringement settlement with VirnetX.

Microsoft and VirnetX announced Monday that they have reached an out-of-court settlement regarding the software giant’s use of two of the smaller firm’s patents.

Under the settlement, VirnetX Holding Corporation (AMEX: VHC) has agreed to drop a pair of lawsuits for patent infringement after Microsoft (NASDAQ: MSFT) agreed to pay a one-time fee of $200 million, and take out licenses for continued use of VirnetX’s patents for virtual private network (VPN) technology, the companies said in a joint statement.

Microsoft in March lost a lawsuit in federal court regarding the two patents and their use in Windows XP, Windows Vista, Live Communication Server, Office Communication Server, Windows Messenger, Live Meeting Console and Microsoft Office Communicator.

Read the full story at Datamation:


Microsoft Pays $200 Million to Settle Patent Tiff