VMware hit with $84.5 million verdict in US retrial over software patents

A federal jury in Delaware decided on Monday that VMware (NYSE:VMW) Inc. must pay $84.5 million for violating two patents owned by the competing software startup Densify.

With its software for enhancing “virtual machines” used in cloud computing, VMware allegedly knowingly violated Densify’s patent rights, according to the judgement made public on Tuesday.

Due to ongoing litigation, a VMware spokeswoman declined to comment on the decision. A request for comment on Tuesday did not receive a prompt response from Densify representatives.

Canada-based Densify won a verdict worth nearly $237 million against VMware in the same case in 2020.

Later that year, a federal judge annulled that verdict and mandated a new trial. Judge Leonard Stark ruled that Densify’s patent-holding subsidiary was the rightful owner of the in question patents and that the parent business lacked sufficient access to them to participate in the lawsuit at the time.

Densify charged Palo Alto, California-based VMware with violating patents for “virtualization” technology, which enables several computer systems to run on a single server, using its vROps, vSphere, and other applications.

VMware was accused of using Densify’s technology as a “blueprint” for its own. VMware, according to Densify, “dominates the virtual infrastructure market” and might “outspend Densify and swamp Densify’s marketing and sales” if its infringement is not curbed.

VMware claimed that it did not violate the patents and that they were invalid. It then sued Densify for patent infringement; the case is currently pending.

VMware hit with $84.5 million verdict in US retrial over software patents.