Software giant Microsoft has paid $200 million to settle two patent infringement lawsuits filed by network security software maker VirnetX.

VirnetX claimed that Microsoft had used VirnetX’s patented virtual private network (VPN) without procuring a license from the company.

The two companies settled their differences out of court, with Microsoft paying VirnetX $200 million to withdraw the two lawsuits and gain a license to use VirnetX technology in its core software development process.

The US District Court handling the proceedings of the case had earlier issued Microsoft with a $105.8 million fine.

VirnetX chief executive and Chairman Kendall Larsen said: This agreement highlights the need for VirnetX’s secure domain name initiative, and we believe that this successful resolution of our litigation.