Microsoft slapped with $106m patent kipper
VirnetX wins infringement case against Redmond
Microsoft has been ordered by a US federal jury in Texas to pay nearly $106m to VirnetX Holding Corporation for infringing two internet communication patents.
Under the ruling Microsoft will be required to cough up $71.75m for infringing a virtual private network patent, and $34m for violating a patent intended for setting up a VPN using a secure domain name service.
According to a statement on VirnetX’s website, the judge in the case could triple Microsoft’s award because the jury had ruled the infringements to be “willful”.
"We are extremely pleased with the Jury's decision," said VirtnetX president and CEO Kendall Larsen.
"Receiving a nine figure award is tremendous and verifies our belief that our patents are foundational and important. We look forward to the appeals process as further validation of our patents."
Unsurprisingly, Microsoft disputed the verdict: "We believe the evidence demonstrated that we do not infringe and the patents are invalid," Microsoft head flack Kevin Kutz said in a statement to Reuters.
The company plans to appeal the award. ®
Patents are broken. If patents are the foundation of your business, then you're just a leech.
Rip up this patent system
Whilst I'm always glad to see large overpowerful companies get a knock, this whole patent fiasco has to come to an end.
Another story with proof that software patents should be banned worldwide. Why should a 'holding company' be allowed to sue another company just because they happen to have bought the patent from someone else?
Of course I'm also happy for the money being taken away from Microsoft :)