VirnetX Inventors May Hold Key to Patent Infringement Case Against Microsoft

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The patent infringement court trial today between VirnetX and Microsoft Corp. in Tyler, Texas just outside Dallas could hinge on what VirnetX’s inventors bring to the courtroom.

Elder Statesman of Emerging Growth Company Writers

Larry Oakley, editor and publisher of, commented today regarding the “Intellectual Property – Patent” jury trial beginning today between VirnetX (AMEX:VHC) and Microsoft Corp. in the U.S. District Court for the Eastern District of Texas, Tyler Division, VirnetX, Inc. v. Microsoft Corporation, Case No. 6:2007cv00080 filed 2/15/2007 (Cause: 35:271 Patent Infringement) with the jurisdiction: “Federal Question” – Presiding judge: Judge Leonard Davis.

Oakley stated that the case could hinge on what VirnetX’s inventors bring to the courtroom. Oakley reported today in his “Special Emerging Growth Situations” column that Microsoft’s “prior art” (patent) argument may have holes in it. “VirnetX has a strong position on that point because the core development team behind its patent portfolio, technology, and software has worked together for over 10 years and is the same team that invented and developed this technology while working at Science Application International Corp., or SAIC,” stated Oakley.

According to Oakley, “SAIC is a Fortune 500 scientific, engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy, the environment, critical infrastructure and health. That team of patent inventors from SAIC followed the patents to VirnetX when VirnetX acquired that patent package. Those core inventors now are on the scientific staff at VirnetX. VirnteX’s patented portfolio of intellectual property, the foundation of its business model, currently consists of 12 patents in the United States and eight international patents, as well as several pending U.S. and foreign patent applications.”

Oakley also predicted that the VirnetX-Microsoft legal battle is being watched by patent reform advocates. “Keep in mind that this is an important event to watch way beyond the VirnetX-Microsoft outcome… but, more importantly, something that could not only work to give VirnetX a true edge in its future patent negotiations with other infringers, it could very well impact patent reform in 2010,” he predicted.

Formed 20 years ago by Larry Oakley, known as the "Elder Statesman of Emerging Growth Company Writers," as a venue for his Conservative Speculator newsletter,, including the Research Reports of its clients, and his
five editorial columns, is now regularly read by serious investors in 96 countries.

Safe Harbor Statement: This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from forecasted results. These risks and uncertainties include market conditions, regulatory approvals, and other risks.

Contact: Larry Oakley, editor,


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