UPDATE 2-Microsoft settles with VirnetX, to pay $200 mln

* Microsoft takes license to patents, to pay $200 mln

* Microsoft had lost $105.75 mln verdict over two patents

* VirnetX shares rise as much as 14.6 percent
(Adds stock prices, paragraphs 2, 8)

NEW YORK, May 17 (BestGrowthStock) – Microsoft Corp (MSFT.O: ) will
pay $200 million to VirnetX Holding Corp (VHC.A: ) and obtain a
patent license to settle litigation accusing it of infringing
two patents for communicating over the Internet.

Shares of VirnetX rose as much as 14.6 percent.

Both companies announced the settlement two months after a
federal jury in Tyler, Texas, on March 16 ordered Microsoft to
pay $105.75 million to VirnetX for willful infringements, an
amount that could have been tripled.

The settlement calls for Microsoft to take a license to
VirnetX patents for Microsoft products. Other aspects of the
settlement and license are not being disclosed.

Based in Scotts Valley, California, VirnetX develops
software and technology for communications over the Internet.

The company lost $40.59 million from its inception on Aug.
2, 2005, through March 31, 2010, with revenue from royalties
totaling $255,685, a May 7 regulatory filing shows.

Microsoft is based in Redmond, Washington, and is the
world’s largest software maker.

In morning trading, VirnetX shares were up 39 cents, or 6.4
percent, at $6.50 on the American Stock Exchange after rising
to $7.00. Microsoft shares rose 7 cents to $29.00 on Nasdaq.

The case is VirnetX Inc v. Microsoft Corp, U.S. District
Court, Eastern District of Texas, No. 07-00080.

Stock Market Today

(Reporting by Jonathan Stempel; Editing by Derek Caney and
Lisa Von Ahn)

UPDATE 2-Microsoft settles with VirnetX, to pay $200 mln