Microsoft will pay $200 million to VirnetX Holding Corp and obtain a patent license to settle litigation accusing it of infringing two patents for communicating over the Internet.

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 Corporation.

"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.