Microsoft Loses $1.5B Patent Case
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Written By Kate Zimmermann | February 23, 2007 | Share This
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Yesterday a California judge ordered Microsoft to pay $1.52 billion to Alcatel-Lucent for violating two patents with Windows Media Player’s method of playing MP3 audio files. As the New York Times writes,
“If the ruling stands, Apple and hundreds of other companies that make products that play MP3 files, including portable players, computers and software, could also face demands to pay royalties to Alcatel.”
Microsoft plans to appeal the case, arguing that one of the patents doesn’t apply to its software, while the other was licensed from a research consortium called Fraunhofer. Furthermore, because Microsoft already paid $16 million for the licensing right to the MP3 software, it hopes to prove that the $1.5B fine is unreasonably high.
If upheld, the damages would do little to the stability of Microsoft’s $29 billion empire, but could draw serious blows to smaller companies. Because the patents in question are for the most common method of digital audio playing, about 400 other companies are at risk of lawsuit.
Worth the Read:
- IPTV & the ALU, Microsoft Soap Opera (GigaOm)
- MP3 Patent Loss Just the Beginning (IP Democracy)
- Jury Tells Microsoft to Pay $1.5 Billion to Alcatel-Lucent Over MP3 Patents (Techdirt)
Topics: Microsoft |