Microsoft Settles VirnetX Patent Case For $200 Million

Software giant Microsoft has paid $200 million to settle two patent infringement lawsuits filed by network security software maker VirnetX.

VirnetX claimed that Microsoft had used VirnetX's patented virtual private network (VPN) without procuring a licence from the company.

The two companies settled their differences out of court, with Microsoft paying VirnetX $200 million to withdraw the two lawsuits and gain a licence to use VirnetX technology in its core software development process.

The US District Court handling the proceedings of the case had earlier issued Microsoft with a $105.8 million fine.

VirnetX chief executive and chairman Kendall Larsen said: “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.”

Microsoft and VirnetX have agreed to continue working on developing security software together, and have some projects lined up for the future.