Microsoft loses another patent case, ordered to pay VirnetX $105.8 million

17 Mar 2010

The world's largest software maker Microsoft Corporation was asked by a District Court in the US to pay $105.8 million to VirnetX Holding Corporation, a secure real-time communications and collaboration technology company for infringing two of VirnetX' patents.

This decision against the Redmond, Washington-based Microsoft is the second such case that the company has lost in recent months.

In December 2009, the US Court of Appeals for the Federal Circuit in Washington had ordered Microsoft to pay $290 million for infringing a patent belonging to Toronto-based software company i4i, which upheld the decision of a lower court. (See: Microsoft loses patent appeal, ordered to alter Word) 

Scotts Valley, California-based, VirnetX had filed a case in 2007 at the US District Court for the Eastern District of Texas alleging that Microsoft had infringed on three of its patents related to communications security and sought both damages and injunctive relief.

In June 2009, VirnetX had hired law firm McKool Smith to fight its case against Microsoft after Smith, representing i4i, won an injunction order refraining Microsoft from selling Microsoft Word in its present form in the US as it infringed upon a patent owned by i4i. (See: Microsoft barred from selling Word in the US; fined $290 million for patent violation) 

The court yesterday awarded VirnetX a total of $105.8 million, $71.75 million for infringing one patent, and $34 million for infringing another.

The jury found that Microsoft had wilfully infringed on the patents and it is still to decide injunctive relief to be given to VirnetX.