SETTLEMENT AND LICENSE AGREEMENT
This SETTLEMENT AND LICENSE AGREEMENT (together with all Exhibits attached hereto, the
“Agreement”), is made and entered into as of May 14, 2010 (the “Effective Date”), by and among Microsoft
Corporation, a Washington corporation (Microsoft Corporation together with its Affiliates, “Microsoft”), on the
one hand, and VirnetX Inc., a Delaware corporation (VirnetX Inc. together with its Affiliates, “VirnetX”), on
the other hand. As used herein, “Party” refers to any of VirnetX or Microsoft individually, and “Parties” refers
to VirnetX and Microsoft collectively.
RECITALS
A. VirnetX Inc. has accused Microsoft of infringing U.S. Patent Nos. 6,502,135 B1 and 7,188,180 B2 (the
“Patents-In-Suit”) in actions filed in the U.S. District Court for the Eastern District of Texas (“the Court”),
designated Civ. Action No. 6:07CV80 (LED) and Civ. Action No. 6:10CV94 (LED) (“the Actions”).
B. Microsoft Corporation has denied any such infringement of the Patents-in-Suit and challenged the validity
thereof. Microsoft has also challenged the enforceability of the Patents-in-Suit to the extent allowed
pursuant to the Order dated January 15, 2010 in Civ. Action No. 6:07CV80 (LED), Docket No. 274 (“the
January 15, 2010 Order”).
C. Microsoft admits no liability with respect to any of the claims asserted in the Actions.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:
AGREEMENT
1.
Compromise Only
. This Agreement is entered into for purposes of settlement and compromise only.
Nothing contained in this Agreement, or done or omitted in connection with this Agreement, is intended as or
shall be construed as an admission of or by any Party, or on behalf of any Microsoft Released Party (as
hereinafter defined), of any fault, liability or wrongdoing whatsoever, or an admission of or by any Microsoft
Released Party that any Licensed Patents (as hereinafter defined) are infringed, valid or enforceable.
2.
Definitions
.
“
Licensed Patents
” shall mean all VirnetX patents and patent applications in existence and owned by or
assigned to VirnetX Inc. or its current Affiliates as of the Effective Date (including, without limitation, the
Patents-In-Suit and the patents and applications set forth on Exhibit A) and all patents and applications
related to such patents and applications (including, without limitation, parents, continuations, continuations
in part, and divisionals).
“
Affiliate
” means any entity that Controls, is Controlled by or under common Control with Microsoft
Corporation or VirnetX Inc.
[***] Indicates portions of this exhibit that have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.
“
Control
” means direct or indirect ownership of at least fifty percent (50%) of the voting power, capital or
other securities of an entity.
“
Licensees
” means Microsoft’s distributors and customers, but only to the extent such third parties exploit
any Microsoft software which (i) has been licensed, created or developed by Microsoft and (ii) is licensed
under this Agreement.
3.
Releases
3.1
VirnetX, on behalf of itself and its predecessors, successors, assigns, attorneys, directors,
shareholders, employees, and officers (collectively with VirnetX, the “VirnetX Releasing Parties”),
hereby voluntarily, irrevocably and unconditionally fully and forever releases, discharges, covenants
not to sue, and holds harmless Microsoft and its predecessors, successors, assigns, attorneys,
insurers, agents, servants, subcontractors, officers, directors, shareholders, representatives,
employees, and Licensees (collectively, the “Microsoft Released Parties”) from and for any and all
rights, claims, debts, liabilities, demands, obligations, promises, damages, causes of action and
claims for relief of any kind, manner, nature and description, known or unknown (collectively,
“Claims”), which any of the VirnetX Releasing Parties have, may have had, might have asserted,
may now have or assert, or may hereafter have or assert against the Microsoft Released Parties, or
any of them, arising, accruing or occurring, in whole or in part, at any time prior to the Effective
Date, including, without in any way limiting the generality of the foregoing, any claims or causes of
action arising out of or related to any of the facts, transactions, matters or occurrences giving rise to
or alleged, or that could have been alleged in or discovered in, the Actions or under any of the
Licensed Patents.
3.2
Microsoft, on behalf of itself and its predecessors, successors, assigns (collectively with Microsoft,
the “Microsoft Releasing Parties”), hereby voluntarily, irrevocably and unconditionally fully and
forever releases, discharges, covenants not to sue, and holds harmless VirnetX and its predecessors,
successors, assigns, attorneys, insurers, agents, servants, subcontractors, officers, directors,
representatives, and employees (collectively, the “VirnetX Released Parties”) from and for any and
all Claims which any of the Microsoft Releasing Parties have, may have had, might have asserted, or
may now have or assert prior to the Effective Date arising out of or related to any of the facts,
transactions, matters or occurrences giving rise to or alleged, or that could have been alleged in or
discovered in, the Actions as to VirnetX’s assertion of the Patents-in-Suit, except that Microsoft does
not release or discharge (or grant a covenant or hold harmless as to) its Claims that the Licensed
Patents are invalid, unenforceable, and/or not infringed by Microsoft.
3.3
The VirnetX Releasing Parties and Microsoft Releasing Parties expressly waive any and all statutes,
legal doctrines and other similar limitations upon the effect of general releases. By way of example,
and without limitation, the foregoing parties waive the benefit of California Civil Code Section 1542,
which states as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.”
The VirnetX Releasing Parties and Microsoft Releasing Parties, with the advice of their counsel, waive any
rights and/or benefits that they, or any of them, might otherwise have under Civil Code Section 1542 and
any and all other statutes, legal doctrines and/or principles of similar effect in California, Washington, and
any other state, federal or foreign jurisdiction, to the full extent that such rights and benefits may be waived.
[***] Indicates portions of this exhibit that have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.
4.
Grant of Licenses and Covenant
4.1
[***], VirnetX hereby grants to Microsoft, and Licensees, a worldwide, irrevocable, nonexclusive,
non-sublicensable fully paid up license and covenant not to sue under the Licensed Patents.
4.2
Notwithstanding the foregoing, (i) the license granted under this Section 4 [***] and (ii) the covenant
not to sue granted under this Section 4 [***]
4.3
The license and covenant not to sue granted herein [***]
4.4
Definitions [***]
5.
Consideration.
5.1. Dismissals. VirnetX shall dismiss with prejudice (and cause Science Applications International
Corporation (“SAIC”) to join in such dismissal) all claims in the Actions, and Microsoft shall
dismiss with prejudice all counterclaims in the Actions (except Microsoft’s affirmative defenses and
counterclaims of (i) non-infringement and invalidity shall be dismissed without prejudice and (ii)
unenforceability shall be dismissed without prejudice but continue to be subject to the January 15,
2010 Order), by filing (and VirnetX causing SAIC to file) on or before May 21, 2010, Stipulations of
Dismissal that provide that each of VirnetX Inc., Microsoft Corporation and SAIC will bear its own
costs, expenses and attorney’s fees in connection with the Actions. In addition, VirnetX Inc. and
Microsoft Corporation agree to execute such additional papers and motions as may be necessary to
cause the Court to effect a disposal of all issues before it and a dismissal of the Actions.
5.2
Payment. In full and complete settlement of all claims asserted against Microsoft in the Actions, and
in full and complete consideration of the licenses, releases, waivers, and other covenants and rights
in this Agreement, Microsoft Corporation shall within twenty (20) business days after the later of the
Effective Date or the provision by VirnetX Inc. and its counsel of an IRS Form W-9 and a letter on
its letterhead with payment instructions consistent with this paragraph pay to VirnetX Inc., in U.S.
dollars, a total payment of two hundred million U.S. Dollars (US$ 200,000,000) by wire transfer into
the following account:
Account Name: Texas IOLTA Trust Account -McKool Smith
Bank Name and Address: Bank of America, N.A., 100 Crescent Court, Dallas, TX 75201
Beneficiary Name: VirnetX Inc.
6.
Term
. This Agreement shall remain in full force and effect until six years after the expiration of the last to
expire of the Licensed Patents.
[***] Indicates portions of this exhibit that have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.
7.
Miscellaneous
.
7.1
Confidentiality. The mere existence of this Agreement (including, without limitation, the
identification of the Parties and any Licensed Patents) is not confidential. On or after a mutually
agreed time, the Parties agree to issue the joint press release in the form attached as Exhibit B.
Subject to the foregoing, no Party may issue a press release or otherwise affirmatively attempt to
publicize the terms or existence of this Agreement. The Parties further agree that the terms and
conditions of this Agreement are confidential and shall not be disclosed by any Party to any other
person except (a) as may be required by law (including, without limitation, SEC reporting
requirements, or any other United States or foreign regulatory requirements) or stock exchange rule
(after prior written notice to the other Party with opportunity to comment on the disclosure), (b)
during the course of litigation so long as the disclosure of such terms and conditions are restricted in
the same manner as is the confidential information of the litigating Party, which includes designating
the Agreement under the highest available level of protection under a protective order; (c) in
confidence to the professional legal, advisory, and financial counsel representing or auditing such
Party; (d) in confidence, in connection with the enforcement of this Agreement or rights under this
Agreement; (e) in confidence, in connection with a merger or acquisition or proposed merger or
acquisition of a Party, or the like; (f) in confidence by Microsoft to Licensees and any third parties
covered by the terms of this Agreement; (g) in confidence, to potential acquirers of all or
substantially all of VirnetX; (h) in confidence to the insurers and third party claim administrators of
Microsoft; (i) in confidence to any person covered by the releases, licenses, waivers or other
covenants and rights granted herein; or (j) as otherwise agreed in writing by the Parties executing this
Agreement. Prior to any disclosure by VirnetX pursuant to the foregoing subsection (a), VirnetX will
provide Microsoft with a draft copy of the proposed disclosure or filing (including, without
limitation, any filing with the SEC) at least twenty-four (24) hours before such disclosure or filing is
made, and the Parties will consult in good faith with respect to the content of the proposed disclosure
and the potential for VirnetX to request confidential treatment with respect to portions of the
Agreement that VirnetX reasonably believes must be disclosed or filed.
7.2
Representations and Warranties. VirnetX represents, warrants, and covenants to Microsoft that:
(a) VirnetX Inc. is the sole, exclusive, and lawful owner of the Licensed Patents (including, without
limitation, the Patents-in-Suit) and has all rights to enforce and license them and, thus the right to
enter into this Agreement and grant all of the releases, licenses, waivers, and other covenants and
rights under this Agreement.
(b) Subject to its Patent License and Assignment Agreement between VirnetX Inc. and SAIC, dated
August 15, 2005 (and the amendments thereto as of November 2, 2006 and March 12, 2008),
VirnetX Inc. is the sole, exclusive, and lawful owner of all interest in and to the Licensed Patents
(including, without limitation, the Patents-in-Suit).
(c) No Claim released herein, and no portion of any such Claim, has been assigned or otherwise
transferred by VirnetX to any other person or entity, either directly, indirectly, or by subrogation or
operation of law. VirnetX has not filed, commenced, served, or otherwise instituted (in each case,
either on its own, or in conjunction with any third party) any complaints, claims, causes of action, or
demands against Microsoft other than those asserted in connection with the Actions.
(d) During the term of this Agreement any consideration required to be paid to any other person,
corporation, or entity if any, on account of any or all of the releases, licenses, waivers, or other
covenants or rights granted under this Agreement to any Microsoft Released Parties shall be paid by
VirnetX, and no additional consideration shall be required of any of the Microsoft Released Parties.
VirnetX has not granted and will not grant any licenses, covenants, and/or other rights, under the
Licensed Patents and/or otherwise, that would conflict with, impair, and/or prevent any or all of the
releases, licenses, waivers, or other covenants or rights granted under this Agreement. VirnetX Inc.
will cause its Affiliates to comply with the terms and conditions of this Agreement.
[***] Indicates portions of this exhibit that have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.
(e) VirnetX has been represented by competent and independent counsel of its own choice
throughout all negotiations preceding the execution of the Agreement, and has executed this
Agreement upon the advice of said competent and independent counsel regarding the meaning and
legal effect of this Agreement, and regarding the advisability of making the agreements provided for
herein, and fully understands the same.
7.3. Representations and Warranties. Microsoft represents, warrants, and covenants to VirnetX that:
(a) No Claim released herein, and no portion of any such Claim, has been assigned or otherwise
transferred by Microsoft to any other person or entity, either directly, indirectly, or by subrogation or
operation of law. Microsoft has not filed, commenced, served, or otherwise instituted (in each case,
either on its own, or in conjunction with any third party) any complaints, claims, causes of action, or
demands against VirnetX other than those asserted in connection with the Actions or the current
reexamination proceedings of the Patents-In-Suit.
(b) Microsoft has been represented by competent and independent counsel of its own choice
throughout all negotiations preceding the execution of the Agreement, and has executed this
Agreement upon the advice of said competent and independent counsel regarding the meaning and
legal effect of this Agreement, and regarding the advisability of making the agreements provided for
herein, and fully understands the same.
7.4
Mutual Representations and Warranties. Each Party and each person signing this Agreement on
behalf of a Party represents and warrants to the other that:
(a) Such Party has not entered this Agreement in reliance upon any promise, inducement, agreement,
statement, or representation other than those contained in this Agreement.
(b) Such Party has the full right and power to enter into this Agreement, and the person executing
this Agreement has the full right and authority to enter into this Agreement on behalf of such Party
and the full right and authority to bind such Party to the terms and obligations of this Agreement.
7.5
Notices. All notices and requests which are required or permitted to be given in connection with this
Agreement shall be in writing and shall be deemed given as of the day they are received either by
messenger, delivery service, or in the United States of America mails, postage prepaid, certified or
registered, return receipt requested, and addressed as follows, or to such other address as the Party to
receive the notice or request so designates by written notice to the other:
If to VirnetX Inc.:
Attn: Kendall Larsen, Chief Executive Officer VirnetX Inc. 5615 Scotts Valley Drive, Suite 110
Scotts Valley, California 95066 Facsimile: (831) 438-3078
[***] Indicates portions of this exhibit that have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.
with a copy to:
Samuel F. Baxter McKool Smith, P.C. 300 Crescent Court, Suite 1500 Dallas, TX 75201 Fax:
(214) 978-4044
If to Microsoft Corporation:
Attn: Director of Licensing, LCA Patent Group Microsoft Corporation One Microsoft Way
Redmond, WA 98052 Fax: (425) 936-7329
with a copy to
: Attn: Law & Corporate Affairs Microsoft Corporation One Microsoft Way
Redmond, Washington 98052 Fax: (425) 936-7329
7.6
Governing Law; Venue. This Agreement shall be construed and controlled by the internal laws of the
State of Texas (excluding conflict of laws principles) and applicable federal laws. The sole and
exclusive venue for any lawsuit arising out of or relating to this Agreement shall be the United States
District Court for the Eastern District of Texas.
7.7. Costs. Each Party shall bear its own costs, expenses and attorneys’ fees incurred in connection with
the Actions, the making of this Agreement, and its performance under this Agreement. Each Party
expressly waives any claim of costs and attorneys’ fees from or against the other Party.
7.8. Successors and Assigns. The terms, covenants, conditions, provisions and benefits of this Agreement
shall be binding upon and inure to the benefit of the Parties and their respective successors and
assigns.
7.9. No Construction Against Drafter. This Agreement results from negotiations between the Parties and
their respective legal counsel, and each Party acknowledges that it has had the opportunity to
negotiate modifications to the language of this Agreement. Accordingly, each Party agrees that in
any dispute regarding the interpretation or construction of this Agreement, no statutory, common law
or other presumption shall operate in favor of or against any Party by virtue of his, her or its role in
drafting or not drafting the terms and conditions set forth herein.
7.10. Captions. Captions or headings used in this Agreement are for the convenience of the Parties only,
and shall not be considered part of this Agreement or used to construe the terms of this Agreement.
7.11. Construction. If any provision of this Agreement shall be held by a court of competent jurisdiction to
be illegal, invalid or unenforceable or otherwise in conflict with law, the remaining provisions shall
remain in full force and effect. If any provisions of this Agreement are deemed not enforceable, they
shall be deemed modified to the extent necessary to make them enforceable. Provisions shall apply,
as applicable, to current and successive events, parties, and transactions.
7.12. Counterparts. This Agreement may be executed in any number of counterparts and by the different
Parties on separate counterparts and each such counterpart shall be deemed to be an original, but all
such counterparts shall together constitute but one and the same Agreement. Execution of this
Agreement may be accomplished by signing this Agreement and transmitting the signature page to
opposing counsel by facsimile or email. The Parties so executing and delivering shall promptly
thereafter deliver signed originals of at least the signature page(s), but no failure to do so shall affect
the validity or enforceability of this Agreement.
[***] Indicates portions of this exhibit that have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.
7.13. Waiver. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver
of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver
unless expressly stated in writing by the Party making the waiver. No waiver of any provision shall
be binding in any event unless executed in writing by the Party making the waiver.
7.14. Entire Agreement. This Agreement (including, without limitation, all Exhibits attached hereto)
constitutes the entire agreement between the Parties with respect to the subject matter hereof, and
supersedes all prior and contemporaneous written or oral agreements, memorandums of
understanding (including the Memorandum of Understanding between Microsoft Corporation and
VirnetX Inc. dated May 12, 2010), or communications as to such subject matter, all of which are
superseded, merged and fully integrated into this Agreement. It shall not be modified except by a
written agreement dated subsequent to the date of this Agreement and signed on behalf of the Parties
by their respective duly authorized representatives.
7.15 Declaratory Judgment Action. Subject to VirnetX’s compliance with the releases, licenses and
covenants set forth in this Agreement, Microsoft agrees not to file a declaratory judgment action
challenging the Licensed Patents against VirnetX for thirty (30) months following the Effective Date.
7.16 Reexamination. [***] Microsoft will also cause to be filed with the United States Patent and
Trademark Office notifications in the current reexamination proceedings of the Patents-In-Suit
indicating that Microsoft Corporation will not participate in those reexamination proceedings.
[***] Indicates portions of this exhibit that have been omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.
IN WITNESS WHEREOF, VirnetX Inc. and Microsoft Corporation, being fully authorized and empowered to
bind themselves to this Agreement, have caused this Agreement to be made and executed by duly authorized
officers as of the Effective Date.
VIRNETX INC.
MICROSOFT CORPORATION
Name: /s/ Kendall Larsen
Name: /s/ Frank H Brod
Title: President, Chairman and CEO
Title: Corp Vice President
Date: 5/14/2010
Date: 5-14-2010
Exhibit A Certain Licensed Patents
Country
App. No.
Filing date
Patent No.
Issue Date
WO
PCT/US99/25325
10/29/1999
AU
00/14553
10/29/1999
761,388
09/18/2003
CA
2,349,519
10/29/1999
EP
99971606.1
10/29/1999
1125419
08/26/2009
EP-GB
99971606.1
10/29/1999
1125419
08/26/2009
EP-DE
99971606.1
10/29/1999
1125419
08/26/2009
EP-FR
99971606.1
10/29/1999
1125419
08/26/2009
EP-IT
46406/BE/2009
10/29/1999
1125419
08/26/2009
JP
2000-580350
10/29/1999
4,451,556
02/05/2010
JP
2009-246033
10/29/1999
US
09/429,643
10/29/1999
7,010,604
03/07/2006
US
10/401,551
03/31/2003
7,133,930
11/07/2006
US
11/301,022
12/13/2005
US
11/839,937
08/16/2007
US
09/429,643
02/15/2000
6,502,135
12/31/2002
WO
PCT/US01/04340
02/12/2001
EP
01910528.7
02/12/2001
JP
2001-560062
02/12/2001
US
10/082,164
02/26/2002
6,618,761
09/09/2003
US
10/401,888
03/31/2003
6,907,473
06/14/2005
US
10/082,285
02/26/2002
6,834,310
12/21/2004
US
10/259,494
09/30/2002
7,490,151
02/10/2009
US
11/839,969
08/16/2007
US
11/924,460
10/25/2007
WO
PCT/US99/25323
10/29/1999
AU
00/16003
10/29/1999
765914
01/15/2004
CA
2,349,520
10/29/1999
EP
99958693.6
10/29/1999
JP
2000-580354
10/29/1999
US
09/558,209
04/26/2000
WO
PCT/US01/13261
04/25/2001
EP
01932629.7
04/25/2001
EP
06014499.5
04/25/2001
EP
06014500.0
04/25/2001
HK
07109112.7
08/21/2007
HK
07109113.6
08/21/2007
JP
2001-583006
04/25/2001
US
10/702,486
11/07/2003
7,188,180
03/06/2007
US
11/679,416
02/27/2007
US
11/839,987
08/16/2007
US
10/702,522
11/07/2003
6,839,759
01/04/2005
US
10/702,580
11/07/2003
6,826,616
11/30/2004
US
09/558,210
04/26/2000
WO
PCT/US01/13260
04/25/2001
EP
01932628.9
04/25/2001
1284079
01/18/2006
EP CH
01932628 9
04/25/2001
1284079
01/18/2006
Country
App. No.
Filing date
Patent No.
Issue Date
WO
PCT/US99/25325
10/29/1999
AU
00/14553
10/29/1999
761,388
09/18/2003
CA
2,349,519
10/29/1999
EP
99971606.1
10/29/1999
1125419
08/26/2009
EP-GB
99971606.1
10/29/1999
1125419
08/26/2009
EP-DE
99971606.1
10/29/1999
1125419
08/26/2009
EP-FR
99971606.1
10/29/1999
1125419
08/26/2009
EP-IT
46406/BE/2009
10/29/1999
1125419
08/26/2009
JP
2000-580350
10/29/1999
4,451,556
02/05/2010
JP
2009-246033
10/29/1999
US
09/429,643
10/29/1999
7,010,604
03/07/2006
US
10/401,551
03/31/2003
7,133,930
11/07/2006
US
11/301,022
12/13/2005
US
11/839,937
08/16/2007
US
09/429,643
02/15/2000
6,502,135
12/31/2002
WO
PCT/US01/04340
02/12/2001
EP
01910528.7
02/12/2001
JP
2001-560062
02/12/2001
US
10/082,164
02/26/2002
6,618,761
09/09/2003
US
10/401,888
03/31/2003
6,907,473
06/14/2005
US
10/082,285
02/26/2002
6,834,310
12/21/2004
US
10/259,494
09/30/2002
7,490,151
02/10/2009
US
11/839,969
08/16/2007
US
11/924,460
10/25/2007
WO
PCT/US99/25323
10/29/1999
AU
00/16003
10/29/1999
765914
01/15/2004
CA
2,349,520
10/29/1999
EP
99958693.6
10/29/1999
JP
2000-580354
10/29/1999
US
09/558,209
04/26/2000
WO
PCT/US01/13261
04/25/2001
EP
01932629.7
04/25/2001
EP
06014499.5
04/25/2001
EP
06014500.0
04/25/2001
HK
07109112.7
08/21/2007
HK
07109113.6
08/21/2007
JP
2001-583006
04/25/2001
Exhibit B
Press Release
FOR IMMEDIATE RELEASE
MICROSOFT AND VIRNETX SETTLE PATENT INFRINGEMENT CASES
REDMOND, WA and SCOTTS VALLEY, CA – May 14 2010 – VirnetX Holding Corp. (AMEX:VHC) and
Microsoft Corp. today announced that they have settled the patent infringement cases brought by VirnetX before
the U.S. District Court for the Eastern District of Texas. Pursuant to the settlement, both lawsuits will be
dismissed.
As part of the settlement, Microsoft takes a license to the VirnetX patents for Microsoft’s products and will
make a one-time payment of $200 million to VirnetX. All other aspects of the settlement and license were not
disclosed.
“This Agreement highlights the need for VirnetX’s Secure Domain Name Initiative, and we believe that this
successful resolution of our litigation with Microsoft will allow us to focus on the upcoming pilot system that
will showcase VirnetX’s automatic Virtual Private Network technology,”said Kendall Larsen, Chief Executive
Officer and Chairman of VirnetX Holding Corp. “We look forward to our continued work with our Secure
Domain Name Initiative partners in that effort.”
“We are pleased to work with VirnetX to bring these cases to a successful resolution through this settlement,”
said Tom Burt, corporate vice president and deputy general counsel, Microsoft Corporation. “We look forward
to VirnetX’s continued progress as it develops its technologies.”
About Microsoft Founded in 1975, Microsoft (Nasdaq ‘MSFT’) is the worldwide leader in software, services
and solutions that help people and businesses realize their full potential.
About VirnetX
VirnetX Holding Corporation, an Internet security software and technology company, is engaged in
commercializing its patent portfolio, developed from work done for the Central Intelligence Agency, by
developing a licensing program as well as developing software products designed to create a secure environment
for real-time communication applications such as instant messaging, VoIP, smart phones, eReaders and video
conferencing. The Company’s patent portfolio includes over 48 U.S. and international patents and pending
applications that were recently declared as essential for 4G security specifications and provide the foundation
for the Company’s unique GABRIEL Connection Technology. For more information, please visit
www.virnetx.com.
