<?xml version="1.0"?><ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType><periodOfReport>2003-09-02</periodOfReport><notSubjectToSection16>1</notSubjectToSection16>
    <issuer>
        <issuerCik>0001101147</issuerCik>
        <issuerName>VIRAGE INC</issuerName>
        <issuerTradingSymbol>VRGE</issuerTradingSymbol></issuer><reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001243821</rptOwnerCik>
            <rptOwnerName>GAWEL SCOTT</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>VIRAGE, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>411 BOREL AVENUE 100S</rptOwnerStreet2>
            <rptOwnerCity>SAN MATEO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94402</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>0</isDirector><isOfficer>1</isOfficer><isTenPercentOwner>0</isTenPercentOwner><isOther>0</isOther><officerTitle>VP, Finance; Acting CFO</officerTitle></reportingOwnerRelationship></reportingOwner><nonDerivativeTable><nonDerivativeTransaction><securityTitle><value>Common Stock, par value 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$0.001</value></securityTitle><transactionDate><value>2003-09-02</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>D</transactionCode><equitySwapInvolved>0</equitySwapInvolved><footnoteId id="F1"/></transactionCoding><transactionAmounts><transactionShares><value>6370</value></transactionShares><transactionPricePerShare><value>1.10</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></nonDerivativeTransaction></nonDerivativeTable><derivativeTable><derivativeTransaction><securityTitle><value>Option (right to buy)</value></securityTitle><conversionOrExercisePrice><value>0.52</value></conversionOrExercisePrice><transactionDate><value>2003-09-02</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>M</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>60000</value></transactionShares><transactionPricePerShare><value>0</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>2002-08-13</value><footnoteId id="F2"/></exerciseDate><expirationDate><value>2012-08-13</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>60000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>20000</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction><derivativeTransaction><securityTitle><value>Option (right to buy)</value></securityTitle><conversionOrExercisePrice><value>0.59</value></conversionOrExercisePrice><transactionDate><value>2003-09-02</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>M</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>56250</value></transactionShares><transactionPricePerShare><value>0</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>2002-08-07</value><footnoteId id="F3"/></exerciseDate><expirationDate><value>2012-08-07</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>56250</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>3750</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction><derivativeTransaction><securityTitle><value>Option (right to buy)</value></securityTitle><conversionOrExercisePrice><value>0.59</value></conversionOrExercisePrice><transactionDate><value>2003-09-02</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>M</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>16458</value></transactionShares><transactionPricePerShare><value>0</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>2002-08-07</value><footnoteId id="F4"/></exerciseDate><expirationDate><value>2012-08-07</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>16458</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>3542</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction><derivativeTransaction><securityTitle><value>Option (right to buy)</value></securityTitle><conversionOrExercisePrice><value>0.52</value></conversionOrExercisePrice><transactionDate><value>2003-09-02</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>D</transactionCode><equitySwapInvolved>0</equitySwapInvolved><footnoteId id="F6"/><footnoteId id="F5"/></transactionCoding><transactionAmounts><transactionShares><value>20000</value></transactionShares><transactionPricePerShare><value>0</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>2002-08-13</value><footnoteId id="F2"/></exerciseDate><expirationDate><value>2012-08-13</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>20000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction><derivativeTransaction><securityTitle><value>Option (right to buy)</value></securityTitle><conversionOrExercisePrice><value>0.59</value></conversionOrExercisePrice><transactionDate><value>2003-09-02</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>D</transactionCode><equitySwapInvolved>0</equitySwapInvolved><footnoteId id="F6"/><footnoteId id="F5"/></transactionCoding><transactionAmounts><transactionShares><value>3750</value></transactionShares><transactionPricePerShare><value>0</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>2002-08-07</value><footnoteId id="F3"/></exerciseDate><expirationDate><value>2012-08-07</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>3750</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction><derivativeTransaction><securityTitle><value>Option (right to buy)</value></securityTitle><conversionOrExercisePrice><value>0.59</value></conversionOrExercisePrice><transactionDate><value>2003-09-02</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>D</transactionCode><equitySwapInvolved>0</equitySwapInvolved><footnoteId id="F6"/><footnoteId id="F5"/></transactionCoding><transactionAmounts><transactionShares><value>3542</value></transactionShares><transactionPricePerShare><value>0</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>2002-08-07</value><footnoteId id="F4"/></exerciseDate><expirationDate><value>2012-08-07</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>3542</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction><derivativeTransaction><securityTitle><value>Option (right to buy)</value></securityTitle><conversionOrExercisePrice><value>2.59</value></conversionOrExercisePrice><transactionDate><value>2003-09-02</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>D</transactionCode><equitySwapInvolved>0</equitySwapInvolved><footnoteId id="F6"/><footnoteId id="F5"/></transactionCoding><transactionAmounts><transactionShares><value>10000</value></transactionShares><transactionPricePerShare><value>0</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>2001-06-25</value><footnoteId id="F7"/></exerciseDate><expirationDate><value>2011-06-25</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>10000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction></derivativeTable><footnotes><footnote id="F1">Pursuant to the terms of the Agreement and Plan of Merger, dated as of July 9, 2003, by and among Autonomy Corporation plc, a corporation formed under the laws of England and Wales ("Autonomy"), Violet Merger Sub, Inc., a Delaware corporation, and Virage, Inc., a Delaware corporation (the "Merger Agreement"), and upon the closing of the merger contemplated therein, each outstanding share of Virage, Inc. common stock was converted into the right to receive $1.10 in cash.  The named individual on page 1 of this Form 4 (the "Named Individual") has converted the shares of Virage, Inc. common stock identified in Part 4 of Table 1 (the "Shares") into the right to receive $1.10 per share in cash.</footnote><footnote id="F2">Options are not immediately exercisable and the underlying shares vest 1/24th per month for each month of continuous service to Virage, Inc.</footnote><footnote id="F3">Options are immediately exercisable and the underlying shares vest 1/8th upon the six month anniversary of February 17, 2003 and vest 1/48th per month for each month of continuous service to Virage, Inc.</footnote><footnote id="F4">Options are immediately exercisable and the underlying shares vest 1/48th per month for each month of continuous service to Virage, Inc.</footnote><footnote id="F5">Pursuant to the terms of the Merger Agreement, and upon the closing of the merger contemplated therein, each outstanding option to purchase shares of Virage, Inc. common stock was converted into the right to receive an option to purchase that number of whole Autonomy ordinary shares equal to the product of the number of shares Virage, Inc. common stock subject to the option multiplied by a fraction (referred to as the "Option Exchange Ratio"), the numerator of which is $1.10 and denominator of which is the average closing selling price of Autonomy ordinary shares as quoted on the London Stock Exchange for the ten trading days preceding the closing date of the merger (as converted to U.S. dollars), rounded down to the nearest whole number of Autonomy ordinary shares (the "Autonomy Options").</footnote><footnote id="F6">Pursuant to the terms of the Merger Agreement, and upon the closing of the merger contemplated therein, the exercise price of the Autonomy Options will be equal to the exercise price for the shares of Virage, Inc. common stock purchasable pursuant to the option divided by the Option Exchange Ratio, rounded up to the nearest whole cent.</footnote><footnote id="F7">Options are not immediately exercisable and the underlying shares vest 1/48th per month for each month of continuous service to Virage, Inc.</footnote></footnotes><ownerSignature><signatureName>/s/ Rachel Paris</signatureName><signatureDate>2003-09-04</signatureDate></ownerSignature></ownershipDocument>



