Microsoft pays up in VPN lawsuit

Posted by Staff writer

Microsoft has agreed to pay VirnetX Holding $200 million to settle a patent dispute over virtual private network (VPN) technology.

The case was first brought in 2007, and centered around Microsoft's use of VPN technology in Windows XP and Vista. A court ruled in VirnetX's favour this March - and Virnex promptly filed another suit extending its claims of patent violation to cover Windows 7 and Windows Server 2008 R2.

As part of the settlement, Microsoft will license the disputed technology. The original case was settled at a cost of $105.75 million to Microsoft, but the new deal almost doubles that amount.

"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’s automatic Virtual Private Network technology," said Kendall Larsen, chairman and CEO of VirnetX.

"We look forward to our continued work with our Secure Domain Name Initiative partners in that effort."

Microsoft looks set to carry on working with VirnetX as it further develops its VPN technology.

"We are pleased to work with VirnetX to bring these cases to a successful resolution through this settlement," said Tom Burt, corporate vice president and deputy general counsel for Microsoft.

"We look forward to VirnetX’s continued progress as it develops its technologies."