VirnetX Holding Awarded $105.75 Million in Patent Infringement Case against Microsoft

VirnetX Holding has reportedly won a patent infringement case against Microsoft (News - Alert) for infringing two patents for communicating over the Internet.

 

According to published reports, a federal jury in Texas on Tuesday ordered Microsoft to pay $71.75 million for infringing on a VirnetX (News - Alert) patent describing a method for creating a virtual private network between two computers. In addition Microsoft has been ordered to pay $34 million for infringing a VirnetX patent for establishing such a network using a secure domain name service – thus damages awarded total $105.75 million. The jury reportedly found that the infringement was “willful.”

 

The decision came after a week of deliberations. Microsoft has said that it plans to appeal the decision.

 

Publicly-traded VirnetX, a developer of software and technology solutions for securing real-time communications over the Internet, filed its complaint against Microsoft in April 2007.

 

As per a regulatory filing, VirnetX lost $33 million from its inception on Aug. 2, 2005 through Sept. 30, 2009, with revenue from royalties totaling $222,204.

'We are extremely pleased with the Jury's decision,' said Kendall Larsen (News - Alert), VirnetX president and CEO, in a statement. 'Receiving a nine figure award is tremendous and verifies our belief that our patents are foundational and important. We look forward to the appeals process as further validation of our patents. With this landmark decision behind us, we can now fully concentrate on our licensing program, Secure Domain Name Registry, essential 4G security patents, and Gabriel Connection Technology Beta.'

 

For more information, check out this report.