Microsoft to cough up $200 million for VirnetX license

Posted on Wednesday, May 19 2010 @ 0:10 CEST by Thomas De Maesschalck
Bit Tech reports Microsoft has made a settlement to pay $200 million to VirnetX to get an irrevocable right to use the firm's VPN technology, after a court ordered Microsoft to cease its infringement and pay the company $105.6 million in damages.
Sadly, that just wasn't an option for Microsoft: with all current versions of Windows featuring the patented VPN technology, to 'cease infringement' would have meant the withdrawal from sale of all copies of its operating system - an infeasible suggestion.

Accordingly, the company has just announced that it has, instead, reached a licensing agreement with VirnetX that sees it granted a irrevocable right to use the company's VPN technology and the dismissal of all active and pending lawsuits regarding the matter in exchange for a one-off payment of $200 million (around £135 million) - almost double the damages originally awarded by the court.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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