Microsoft pays VirnetX $23m to settle patent row

Microsoft has agreed to pay $23 million to software company VirnetX Holding Corp in a move which will settle all pending lawsuits between the pair and grant Microsoft an extended license to the company's patents.

According to both companies, the agreement “amends and restates” certain terms of a previous settlement agreed in May this year.

Under the terms of the amended agreement, Microsoft has agreed to pay $23 million to VirnetX to settle a pending patent dispute. The payment will also expand Microsoft’s license to include VirnetX’s entire patent portfolio, VirnetX said in a statement.

The patent infringement case was brought by VirnetX was at the US District Court for the Eastern District of Texas last year and targeted Microsoft’s Skype service, which allows instant messaging and internet calling.

Both companies will also jointly move to terminate the pending inter partes review proceedings at the US Patent and Trademark Office.

The remaining aspects of the agreement were not disclosed.

Kendall Larsen, chief executive at VirnetX, said: “We are pleased to have come to an agreement with Microsoft Corporation and put all our legal disputes behind us.”

A spokesman for Microsoft said it was pleased that the settlement included an expanded license to VirnetX’s entire patent portfolio.

VirnetX has also been involved in litigation with technology company Apple after it accused the California-based technology of infringing its patents through the Facetime app.

The case, which initially found in favour of VirnetX, is now subject to a re-trial.