It appears that Microsoft has lost the first round of its patent infringement case with VirnetX. VirnetX is claiming that Microsoft infringed on two networking patents held by it. VirnetX says that MS used its VPN patents in Windows Server 2003, XP, Vista, Live Communications Server, Windows Messenger, Office Communicator and several versions of Office. The case is underway in Texas where the jury has recommended MS pay $105.75 million to VirnetX for the infringement. Microsoft is, of course, appealing the verdict and it is unhappy with the outcome of the ruling. MS believes the patents are invalid and is hoping the court will overturn the jury's ruling. The U.S. District Court for this case is the same one used in the i4i versus Microsoft case in which MS had to pay over $200 million for another patent infringement.
VirnetX is seeking $242 million in damages for the infringement of its patents.