VPN Legal Issues Haunt W7 / 2008 Server

Posted: April 16, 2010 in Industry Commentary

There is an interesting continuation of news at the end of March being reported regarding Redmond’s famous tenant and VirnetX. We don’t often see patent issues in the VPN market, let alone a successfully waged one with Microsoft. This will mark the second legal issue over this technology and it appears the United States Patent and Trademark Office (USPTO) has given the green light for the W7 / 2008 Server suit to continue.

As reported by ZDNet blogger, Mary-Jo Foley, this one could get ugly:

“Last month, the East Texas jury recommended Microsoft be required to pay VirnetX $106 million, but VirnetX believes it deserves more, due to Microsoft’s size, ‘financial condition’ and its failure to take remedial action.”

What does this mean for the market? Practically speaking, most likely not much. Although it could drive costs up for customers as VirnetX seems only interested in receiving money over the spat. Or it could be that we see a stripping out of the technology from DirectConnect as has been done with Office Communicator over the initial suit.

Questions remain.

What becomes of DirectConnect?

Will functionality be impacted?
How will the market respond to another potential shift in VPN options?

Haus will continue to monitor.

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