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Microsoft 1.5 Billion Back in the Banks as Judge Overturns Ruling
Monday, August 06, 2007
A U.S. judge on Monday threw out a record $1.5 billion verdict against Microsoft ruling the world's largest software had not infringed on audio technology patents held by France's Alcatel-Lucent. A federal jury in San Diego ruled in February that Microsoft had violated two patents related to MP3 audio files and handed Alcatel-Lucent the largest-ever damages award in a U.S. patent case.

U.S. District Judge Rudi Brewster said in a 43-page order that the jury's damages could not stand because Microsoft had not violated one of the two patents. Representatives from Alcatel-Lucent stated that "the reversal was shocking and disturbing". They plan to appeal the decision. "Today's ruling by the judge reversing the jury's $1.52 billion verdict against Microsoft is a victory for consumers of digital music and a triumph for common sense in the patent system," said Brad Smith, Microsoft's general counsel.

Many intellectual property lawyers felt that the original amount awarded was bound to be lowered after a landmark U.S. Supreme Court ruling in April. This is but one of the many disputes between Microsoft and Alcatel-Lucent as the two are locked in a number of patent disputes, including a suit over video-decoding technology in Microsoft's Xbox 360 video game console.

Original Story:
Microsoft ordered to pay $1.5 billion in MP3 patent lawsuit

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posted by Jody @ Monday, August 06, 2007  
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