Friday, June 10, 2011

MICROSOFT LOSES PATENT INFRINGEMENT CASE, MUST PAY $290 MILLION


We've diligently followed the Microsoft v. i4i Limited Partnership patent dispute as it wound its way through the courts, and now comes the day of reckoning: by a unanimous decision, the US Supreme Court has upheld the patent-infringement finding against Redmond. For those of you just catching up, MS had been taken to court by Toronto-based i4i over a portfolio of XML-related patents, patents it had already offered to license to the software behemoth.

In court, Microsoft claimed it had not infringed and that the patents were invalid; a 2009 Texas court disagreed and awarded $200 million in damages. A subsequent appeal failed. Oh, and the government sided with i4i. Today's Supreme Court verdict upholds the lower courts' decisions: Microsoft Word is an infringing product, and the company now owes $290 million. The finding likely won't affect consumers, as the offending versions of Word are now obsolete. Still, $290 million isn't chump change, even for the world's largest software company.

1 comment:

  1. Also remember that a patent infringement law suite can be a David-versus-Goliath confrontation. Defendants in patent infringement lawsuits are usually large corporations with unlimited resources, while plaintiffs in patent infringement lawsuits are often individuals or small businesses with very limited resources.

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