VirnetX Holding of Scotts Valley, Calif., announced Thursday that it had signed McKool Smith to pursue its patent infringement suit relating to a networking technology that it filed in 2007. There are several parallels between i4i’s suit and VirnetX’s. Not only does it involve the same defendant, it’s in the same court in the Eastern District of Texas before the same judge, Leonard Davis, and against the same defense lawyers at Weil, Gotshal & Manges. Those factors–and an attractive alternative fee structure–compelled VirnetX to hire McKool, according to its press release.
“In light of their recent win against the same attorneys and opponent we are facing, we think the McKool Smith team is an outstanding choice to lead us into the trial phase of our litigation with Microsoft,” said VirnetX’s CEO Kendall Larsen in a statement. “They are widely considered to be one of the best patent litigation firms in the country and we believe that they will be instrumental in the successful resolution of this litigation. We also believe that our new legal fee arrangement, a combination of flat fee and contingency, will help us better meet our cash flow needs and reduce our burn rate as we gear up for trial.”
VirnetX, which has been represented by McDermott and two local Texas firms, survived Microsoft’s motion to dismiss last June. But a spokesperson for VirnetX confirmed to the Litigation Daily that McKool Smith would be taking over McDermott’s responsibilities.
Michael Nadel, an attorney at McDermott attorney, declined to comment. We left a message with Microsoft and will update this post if we hear back.