Microsoft to pay $200 million in patent dispute

From CNET News.com: Microsoft will pay VirnetX Holding $200 million to settle a patent dispute over VPN technology in Windows, the companies announced Monday.

As part of the settlement, Microsoft will also obtain a license to use VirnetX technology in Microsoft products.

VirnetX first sued Microsoft in 2007, claiming the software giant had violated two of its VPN (virtual private network) patents through the use of the technology in Windows XP and Vista. A U.S. District Court ruled in VirnetX's favor in March, determining that Microsoft had willfully infringed on the VPN patents in question and ordering the company to pay VirnetX damages of $105.75 million.

Just a few days after the verdict was handed down, VirnetX filed another lawsuit against Microsoft, claiming that the same patent-violating technologies were also in Windows 7 and Windows Server 2008 R2.

VirnetX asserted that Microsoft had violated U.S. patents 6,502,135 and 7,188,180, which both cover specific ways to secure IP-based communications through VPNs and similar technologies.

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