VirnetX accused Cicso of violating one of its patents by selling routers, which were designed to run VPN inventions.
Networking firm, Cisco Systems, has won a patent infringement lawsuit against security software company, VirnetX over virtual private networks (VPNs) inventions.
A Texas federal jury in the US said Cisco did not infringe patents held by VirnetX, which accused the networking firm of violating one of its patents by selling routers designed to run VPNs.
The jury also rejected the security firm's demand for $258m in damages from Cisco.
Cisco general counsel, Mark Chandler, said: "We are grateful that a jury in Tyler, Texas, agreed with Cisco that our accused products do not use VirnetX's technology.Cisco will continue to do the right thing for our customers and shareholders by vigorously defending against patent infringement lawsuits that lack merit."
"In addition, it's important to note the US Patent and Trademark Office (PTO) has initially found nearly all of the asserted claims from VirnetX invalid," he added.
Last year, VirnetX won a patent infringement case against Apple, when a Texas court ordered the iPhone maker to pay $368.2m in damages for infringing the security software firm's networking patents.
VirnetX currently has infringement patent cases against Avaya and Siemens.