Cisco targeted by another patent troll

VirnetX seeking $258 million from alleged VPN infringement

Another patent enforcement company is coming after Cisco. VirnetX Holding Corp. is seeking $258 million from Cisco for allegedly infringing VPN patents, according to this Bloomberg report.

VirnetX won a $368.2 million verdict against Apple in November, Bloomberg reports, and in 2010, Microsoft was ordered to pay VirnetX $106 million after a jury found it guilty of willful infringement of two patents belonging to the company.

Cisco last month lost a ruling to patent enforcement company - commonly referred to as patent trolls - Innovatio IP Ventures seeking to block the company from attempting to collect royalties from Cisco WiFi customers.

VirtnetX lawyers claim Cisco began using VirnetX technology in 2005 and has made more than $1 billion of revenue on it. Cisco denies infringing the four patents, contends they are invalid, and argues VirnetX isn't entitled to any damages, according to Bloomberg:

"VirnetX did not invent secure communication over the Internet," said John Desmarais of Desmarais LLP in New York, representing Cisco. San Jose, California-based Cisco "uses industry standard parts" and doesn't violate VirnetX's patent rights, he said.

The case targets Cisco routers, software and phones that have VPN functions, including its Unified Communications Manager, TelePresence and AnyConnect products.

The case, VirnetX Inc. v. Cisco Systems Inc., 10cv417, U.S. District Court for the Eastern District of Texas, was filed in 2010.

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