In May 2010, Microsoft Corporation announced its agreement to pay $200 million to VirnetX, Inc. and license its patents as part of a settlement to a patent infringement lawsuit. VirnetX claimed Microsoft infringed its patents related to establishing secured communication links in virtual private networks.

Just two months prior, a jury in the United States District Court, Eastern District of Texas ordered Microsoft to pay VirnetX a damage award of $105.75 million.  Through the settlement, Microsoft avoided the potential tripling of the jury award based on the jury’s finding of willful infringement.

SOURCES: Nicholas Kolakowski, “Microsoft settles patent infringement case with VirnetX,” eWeek.com, May 17, 2010 (http://www.eweek.com/c/a/Government-IT/Microsoft-Settles-Patent-Infringement-Case-With-VirnetX-607541/); “Microsoft settles with VirnetX, to pay $200 million,” Reuters, May 17, 2010 (http://www.reuters.com/article/idUSTRE64G39620100517); “VirnetX awarded $105.75 million judgment against Microsoft,” VirnetX.com, March 16, 2010 (http://www.virnetx.com/pr-3-16-2010.php).