Microsoft settles with VirnetX, to pay $200 million

NEW YORK Mon May 17, 2010 11:03am EDT

Related Topics

NEW YORK (Reuters) - 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.

Shares of VirnetX rose as much as 14.6 percent.

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 August 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.

In morning trading, VirnetX shares were up 39 cents, or 6.4 percent, at $6.50 on the American Stock Exchange after rising to $7.00. Microsoft shares rose 7 cents to $29.00 on Nasdaq.

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

(Reporting by Jonathan Stempel; Editing by Derek Caney and Lisa Von Ahn)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
investorken wrote:
It is very rear for the Evil Empire to admit wrong-doing and pay a fee to one of the 100’s or 1000’s of companies they have wrongfully destroyed or almost destroyed. They normally litigate until their victims run out of money and no longer exist.

May 17, 2010 9:31am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.