VirnetX had claimed Microsoft was infringing on two of its patents on automatic and secure virtual private network (VPN) technology.
The settlement, which also calls for Microsoft to take a licence to the VirnetX patents for Microsoft's products, comes after Microsoft lost a jury trial in the case in March.
A joint statement by Microsoft and VirnetX said "all other aspects of the settlement and licence were not disclosed".
This article was first published by Computer Weekly
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