McKool Smith Announces $105.75 Million Verdict for VirnetX

Patent Infringement Lawsuit Against Microsoft

TYLER, Texas – The law firm of McKool Smith is announcing a $105.75 million patent infringement verdict handed down today on behalf of Scotts Valley, Calif.-based VirnetX Holding Corporation (NYSE Amex: VHC) against Redmond, Wash.-based Microsoft Corp. (NASDAQ: MSFT).  

The verdict follows a weeklong trial before Judge Leonard Davis of the U.S. District Court for the Eastern District of Texas-Tyler Division.  

The McKool Smith trial team representing VirnetX included Dallas principals Douglas Cawley and Rosemary Snider; Dallas associates Brad Caldwell, Steven Callahan, Jason Cassady, Austin Curry and Luke McLeroy; and Austin associate Ramzi Khazen. VirnetX also was represented by Robert Parker of Tyler’s Parker, Bunt & Ainsworth and Otis Carroll of Tyler's Ireland, Carroll & Kelley.  

VirnetX, a supplier of tools for securing real-time communications over the Internet, sued Microsoft in February 2007 based on claims that the software giant had infringed two VirnetX patents, U.S. Patent No. 6,502,135 and No. 7,188,180. The ‘135 patent covers a method of transparently creating a virtual private network (VPN) between a client computer and a target computer. The ‘180 patent covers a method for establishing a VPN using a secure domain name service.  

In the verdict, jurors awarded $71.75 million against Microsoft for infringing the ‘135 patent, and $34 million for infringing the ‘180 patent. Jurors also found that Microsoft’s infringement was willful.

“Our clients are very happy with today’s verdict,” says Mr. Cawley.  

McKool Smith is recognized as one of the premier trial law firms in the United States based on significant courtroom victories and substantial settlements for domestic and international clients. With more than 120 attorneys in Austin, Dallas, Houston, Marshall, New York, and Washington DC, the firm handles complex commercial litigation, intellectual property claims, bankruptcy matters, and white collar litigation for companies and individuals across the globe. McKool Smith has won more of the Top 100 Verdicts than any other law firm in the nation every year since 2008. Firm clients include major airlines, telecommunications companies, medical device manufacturers, energy producers, and many others.  

For more information, please visit www.mckoolsmith.com or contact Bruce Vincent at 800-559-4534 or bruce@androvett.com.