Microsoft Settles Patent Dispute With VirnetX For $23 Million

VirnetX Patent Microsoft

Back in 2010, Microsoft settled with VirnetX for about $200 million for patent violation related to patents. Back in 2013, VirnetX again sued Microsoft for Skype related technologies. Today, both the companies announced that they have settled the patent case and Microsoft will be paying $23 million to VirnetX.

ZEPHYR COVE, Nev. and REDMOND, Wash., Dec. 19, 2014 /PRNewswire/ — VirnetX Holding Corporation (NYSE MKT: VHC) and Microsoft Corporation announced today that on December 17, 2014, VirnetX, Inc. and Microsoft Corporation have signed an Amended Settlement and License Agreement. This agreement amends and restates certain terms of the original Settlement and License Agreement, dated May 14, 2010, between VirnetX, Inc. and Microsoft Corporation. As a result of the agreement, the parties have settled their pending patent disputes.

Under the terms of the amended agreement, Microsoft has agreed to pay $23 million to VirnetX to settle the patent dispute and expand Microsoft’s license. The parties have also agreed to dismiss the patent infringement case brought by VirnetX, Inc. before the U.S. District Court for the Eastern District of Texas and jointly move to terminate the pending inter partes review proceedings between Microsoft and VirnetX, Inc. as to Microsoft.  All other aspects of the agreement were not disclosed.

“We are pleased to have come to an agreement with Microsoft Corporation and put all our legal disputes behind us,” said Kendall Larsen, Chief Executive Officer and Chairman of VirnetX, Inc.  “This agreement allows us to focus our resources towards the release of our Gabriel Secure Communication Platform™ and Gabriel Collaboration Suite™ products in the first-half of 2015 and our ongoing licensing and strategic partnership efforts.”

“Microsoft Corporation is pleased to have come to an agreement with VirnetX and that the settlement includes an expanded license to VirnetX’s entire patent portfolio,” said a Microsoft spokesperson.

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