VirnetX CEO: Patent Office Confirms Patents From Microsoft Trial
Posted on 24. Jun, 2010 by admin in Virnetx in the Media
By Jeanette Borzo Of DOW JONES NEWSWIRES http://online.wsj.com
SAN FRANCISCO (Dow Jones)–VirnetX Holding Corp. (VHC), which has been in a legal dispute with Microsoft Corp. (MSFT), is expected to announce on Tuesday that the U.S. Patent and Trademark Office has re-confirmed two of the company’s key patents, the company’s chief executive said.
The patents cover a broad swath of communications-security and virtual-private-network (VPN) technology seen as key to fourth-generation, or 4G, mobile phone networks. The technology was at the heart of a legal battle between VirnetX and the software giant that was settled in May when Microsoft agreed to pay $200 million to the Scotts Valley, Calif. company.
VirnetX now plans to contact companies using technology covered by its patents in order to sign licensing deals for its security technology, said Kendall Larsen, VirnetX’s chief executive officer, president and chairman.
“This was the last question left to be answered before major players contemplated working with us,” Larsen said. The legal tussle with Microsoft had prompted some potential partners to take a “wait-and-see” approach to licensing VirnetX’s technology, he said.
According to VirnetX, Microsoft petitioned the patent office for the reexamination in January.
Microsoft declined to comment.
Under the terms of the May settlement, Microsoft said it would license VirnetX’s patents for securing communications on 4G mobile-phone networks. The settlement was significant for VirnetX, which reported revenue of only $26,306 for 2009.
In February 2007, VirnetX alleged that Microsoft infringed two of its U.S. patents by including VPN technology in Microsoft’s Windows and Office communications server products. This March, a jury recommended that Microsoft pay $105.8 million for patent infringement. The two companies later settled before the case went back to court.
Last Wednesday, the VirnetX board of directors approved a one-time special cash dividend of $0.50 per share of the common stock, payable on July 15, 2010 to stockholders of record on July 1, 2010.
On Monday, VirnetX shares, listed on the American Stock Exchange, closed down slightly at $6.20. The shares are up 275% since over the past 12 months.
- By Jeanette Borzo, Dow Jones Newswires; 415 765 8230; jeanette.borzo@dowjones.com