Microsoft to pay VirnetX 200 million dollars in patent case

Microsoft will pay VirnetX Holding Corp. 200 million dollars to settle patent infringement cases brought against the US software giant, the companies announced on Monday.

The settlement comes two months after a Texas jury awarded 105.75 million dollars to VirnetX after finding Microsoft guilty of infringing two patents held by the Scotts Valley, California-based company.

A joint statement said that as part of the settlement, Microsoft will obtain a license to the VirnetX patents for Microsoft's products and the pending lawsuits will be dismissed.

VirnetX describes itself as a "secure real-time communications and collaboration technology company" with a patent portfolio "derived from a Central Intelligence Agency security project."

Its products include software that provides a secure environment for real-time communications such as instant messaging.

"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," VirnetX chief executive Kendall Larsen said.