Microsoft scores patent World’s First
p2pnet.net news:- Bill and the Boyz have the distinction of achieving a ‘first’ in the world of patents.
In the world’s largest award for patent violation, Miocrosoft has been ordered to pay France’s Alcatel-Lucent the grand total of $1.52 billion for improperly using Alcatel-Lucent audio technologies in the Windows Media Player, including the version in the new Vista operating system.
On top of that, Alcatel-Lucent, the world’s biggest maker of communications equipment, can also ask for an order barring Microsoft from using the patented technology, says Bloomberg News.
“Alcatel-Lucent’s victory also may clear the way for legal actions against hundreds of companies that rely on MP3, the standard for playing music and sound files on a computer, mobile phone or digital-music player,” says the story.
However, the $1.52 billion, which represents a mere six weeks or so of free cash flow for Microsoft, observes Bloomberg dryly, may be halved if it wins an unrelated case currently before the Supreme Court, “that could alter how patent damages are calculated for software companies with overseas sales”.
“Microsoft, which had almost $29 billion in cash and short- term investments as of Dec. 31, said it will ask U.S. District Judge Rudi M. Brewster to overturn the verdict and will seek further review in an appeals court if necessary,” says the story.
Alcatel-Lucent will decide later whether to seek to block Microsoft from using the technology, says Bloomberg, adding:
“The dispute started in 2002 when Lucent sued computer makers Gateway Inc. and Dell Inc. over technologies including this one. Microsoft joined the case because it may be obligated to reimburse Dell and Gateway for any damages they have to pay. The trial over MP3 was between only Microsoft and Alcatel-Lucent.”
The case is Lucent Technologies Inc v Gateway Inc, 02cv2060, US District Court for the Southern District of California (San Diego).
Also See:
Bloomberg News – Microsoft Told to Pay Alcatel-Lucent $1.52 Billion, February 22, 2007
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February 22nd, 2007 at 6:27 pm
That’s odd. I thought that the EU didn’t recognize software patents.
February 22nd, 2007 at 7:15 pm
They do not, but I think this case was tried in a U.S. court. The U.S. courts and government are widely notorious for making U.S. citizens’ and companies interests secondary to those of foreign interests. It only surprises me that with the money that Microsoft had, it could not buy out of the verdict.
As much as I dislike Microsoft, I would say they got the shaft on this one.
February 23rd, 2007 at 5:04 am
“for improperly using Alcatel-Lucent audio technologies in the Windows Media Player”
“Improperly using”? Is that not putting it too mildly? If X Computeres illegally installs unlicensed copies of Windows into the computers it makes and Microsoft finds out X Computers would be labeled a pirates, not an “improper user”, and the owner would be arrested at Miscrosoft’s request.
Now, when will the police raid Microsoft for selling pirated software? Or RIAA members for selling pirated records (records that contain unlicensed songs, and these aare all over the place?
The question is, why is the tratment different for big corporations, labeled “improper users” than it is for the small alleged violators, such as the kid with a camera at a theater who are labeled “criminals”?
Why is a peddler of asian copies of DVD in a Los angeles stree arrested if cought selling “improperly mase” DVD but a seller of Windows is not arreted for selling “improperly made” software?
Put differently, what is the diffrerence between an “improper user” and a “criminal”? Is the answer how much money they have in the bank and how many lawyers they can hire?
Rafael Venegas
http://www.gvenegas.com