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McKool Smith Announces $105.75 Million Verdict for VirnetX

Patent Infringement Lawsuit Against Microsoft

March 16, 2010

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; 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. 

With more than 130 litigators working as an integrated team across offices in New York, Washington, D.C. and Texas, McKool Smith has established a reputation as one of America’s leading trial firms. The firm has been recognized by The National Law Journal and VerdictSearch for winning more Top 100 verdicts than any other U.S. law firm during the past three years.  McKool Smith represents leading clients across a broad range of practice areas, including complex commercial litigation, intellectual property, bankruptcy, and white collar defense.