Microsoft hit by another patent dispute

Microsoft has been ordered to pay VirnetX $106 million over a VPN patent.


Microsoft has been slapped with a $106 million fine for infringing two patents held by VirnetX Holding Corporation.

A US federal jury in Texas ordered Microsoft to pay VirnetX $71.75 million for infringing a virtual private network patent, and a further $34 million for violating a patent covering the creation of a secure domain name service.

Advertisement - Article continues below

According to McKool Smith, the law firm which represented VirnetX, those fines could be tripled by a judge, as the jury found that Microsoft "wilfully" violated the patents.

"Our clients are very happy with today's verdict," said McKool Smith lawyer Douglas Cawley. "We hope this decision sends a clear message to patent infringers everywhere that they will be held responsible for wrongly profiting off the hard work of others."

Microsoft claimed it was readying an appeal. "We are disappointed by the jury's verdict," said Kevin Kutz, director of public affairs at Microsoft.

"We respect others' intellectual property, and we believe the evidence demonstrated that we do not infringe and the patents are invalid. We believe the award of damages is legally and factually unsupported, so we will ask the court to overturn the verdict," he added.

Featured Resources

The case for a marketing content hub

Transform your digital marketing to deliver customer expectations

Download now

Fast, flexible and compliant e-signatures for global businesses

Be at the forefront of digital transformation with electronic signatures

Download now

Why CEOS should care about the move to SAP S/4HANA

And how they can accelerate business value

Download now

IT faces new security challenges in the wake of COVID-19

Beat the crisis by learning how to secure your network

Download now

Most Popular

network attached storage (NAS)

Western Digital accused of sneaking inferior SMR tech into NAS drives

1 Jun 2020
data breaches

EasyJet faces class-action lawsuit over data breach

26 May 2020
Microsoft Windows

Microsoft warns users not to install Windows 10's May update

28 May 2020