The Associated Press

REDMOND, Wash. – Microsoft Corporation has agreed to pay VirnetX Holding Corp. a one-time fee of $200 million to settle a patent infringement lawsuit and license its technology going forward.

Microsoft deputy general counsel Tom Burt said in a statement Monday that the company was pleased to bring the case to a successful resolution.

VirnetX CEO Kendall Larsen said the agreement highlights the need for the company’s Secure Domain Name Initiative and allows it to focus on an upcoming pilot of the system.

In March, a jury awarded VirnetX nearly $106 million after determining Microsoft violated two of its patents.

The patents cover ways to establish virtual private network, or VPN, connections.

The connections are used to protect Internet and other data traffic from snoops. The traffic is generally encrypted, or scrambled, so outsiders can’t decipher it.

Microsoft shares rose 1 cent to close Monday at $28.94. VirnetX shares slipped 2 cents to $6.11.

Get the latest news alerts: at Twitter.