---
title: "Patent Litigation Settled: Microsoft Pays $200M to VirnetX"
description: Patent information behind VirnetX lawsuit settlement payment from Microsoft for $200 million.
image: https://info.ipvisioninc.com/hs-fs/file-2839895990-png/images/2_virnetx_patents2.png
---

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# Patent Litigation Settled: Microsoft Pays $200M to VirnetX

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Ellen Rosen of [Bloomberg Businessweek](http://www.businessweek.com/news/2010-05-18/microsoft-hyundai-cable-tv-intellectual-property-update1-.html) reported today that Microsoft paid $200 million to settle patent litigation brought by [VirnetX Holdings Corporation](http://www.virnetx.com/index.php) in February 2007.   VirnetX alleged that Microsoft infringed two VirnetX U.S. patents that covered the Virtual Private Network (VPN) technology contained in Microsoft Windows and Officer Server products. 

### IPVision Patent Map

[![IPVision Patent Map of 2 VIrnetX Patents](https://info.ipvisioninc.com/hs-fs/file-2839895990-png/images/2_virnetx_patents2.png " align=")](http://see-the-forest.com/DocumentRecall.act?docId=1nsdji.g9d0utqab&sidebar=none)

The two U.S. patents asserted by VirnetX were **U.S. 6,502,135 "*Agile network protocol for secure communications with assured system availability*"** which has been cited by 85 other U.S. patents and **U.S. 6,839,759 "*Method for establishing secure communication link between computers of virtual private network without user entering any cryptographic information*"** which has been cited by 14 other U.S. patents.  These patents are shown on this IPVision Patent Landscape Map (the top "fan" is the '759 patent).  ***Note: Click on Patent Map Image to View an Interactive [Patent Landscape Map](https://info.ipvisioninc.com/support/reading-maps/multi-patent-landscape-maps/)***.

Among the patents citing the VirnetX patents are 12 Microsoft, 11 IBM and 9 Cisco patents.

At the time the suit was filed VirnetX's stock price was under 50 cents per share.  On May 17 VirnetX (Symbol: VHC) closed at $6.11 per share with a market capitalization of $267 million.  VirnetX stock was a pure play on the Microsoft litigation.  In the year ended December 31, 2009 VirnetX had revenues of only $26,000 and a net loss of over $13 million.  This is VirnetX's stock chart since the filing of the suit against Microsoft:

### VirnetX Holdings Corporation (VHC) Stock Chart

[![VirnetX Stock Chart](https://info.ipvisioninc.com/hs-fs/file-2839896000-png/images/virnetx_stock_chart-resized-600.png)](http://www.nasdaq.com/aspx/chartingbasics.aspx?intraday=off&timeframe=5y&charttype=ohlc&splits=off&earnings=off&movingaverage=None&lowerstudy=volume&comparison=off&index=&drilldown=off&symbol=VHC&selected=VHC)

Author:  Joseph G. Hadzima, Jr. | Senior Lecturer, MIT Sloan School of Management | President of IPVision, Inc.

 

 

 

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