Can VirnetX Win More Patent Suits? (VHC, AAPL, CSCO, MSFT)

VirnetX Holding Corp (NYSE: VHC) is out with more patent suits and the news is sending shares higher.  After all, it has already had a major success in its patent cases before.  The company has filed a complaint against Aastra USA, Inc., Aastra Technologies Ltd., Apple Inc. (NASDAQ: AAPL), Cisco Systems, Inc. (NASDAQ: CSCO), NEC Corporation, and NEC Corporation of America in the United States District Court for the Eastern District of Texas, Tyler Division.

The company noted the following patents as U.S. Patent Numbers:

• 6,502,135
• 6,839,759
• 7,188,180
• 7,418,504
• 7,490,151

VirnetX did not specify in the release what it is asking for in specific damages, but it noted that it “seeks both damages and injunctive relief.” The company’s suit filed alleges that the companies have infringed upon its patents which cover communications security and virtual private networks.

A quick description from the company is an Internet security software and technology company.  A look on Yahoo’s business description is that VirnetX Holding Corporation “engages in developing and commercializing software and technology solutions for securing real-time communications over the Internet.”  It also lists 12 employees.  Twelve.  Revenues had been non-existent: $26K in 2009, $134 K in 2008, and $75 K in 2007.  At the end of the March 31 quarter, VirnetX had $4.552 million in cash on hand.  But that was then.

It ended the second quarter 2010 with $200,023,392 in revenues.  That $200 million came from a settlement and licensing pact from Microsoft Corporation (NASDAQ: MSFT).  The company had previously won a judgment against Microsoft before the settlement and license pact was reached. This is why the patent case matters.

Whether this and other patent suits will result in a settlement or a verdict, that will be known only in time.  Predicting that this early in the game is guesswork.  Early this morning in pre-market trading there were double-digit percentage gains.  After 20 minutes of trading its shares are up 5.6% at $6.03 and there have been 150,000 shares traded.  The volume on this stock is spotty but is listed as being more than 400,000 shares per day, and the 52-week trading range is $1.85 to $7.99.

JON C. OGG