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April 8, 2009 3:35 PM PDT

Microsoft slapped with $388 million patent verdict

by Ina Fried
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Microsoft was hit Wednesday with a $388 million verdict in a long-running patent infringement case.

In the suit, Uniloc alleged that Microsoft used its patented technology as part of the software giant's product activation methods. A federal jury in Rhode Island found that Windows XP, Office XP, and Windows Server 2003 infringed on a Uniloc patent.

Microsoft said that it will appeal.

"We are very disappointed in the jury verdict," Microsoft spokesman Jack Evans said in an e-mail. "We believe that we do not infringe, that the patent is invalid and that this award of damages is legally and factually unsupported. We will ask the court to overturn the verdict."

Microsoft had initially won a summary judgment ruling, which would have ended the case in its favor, but Uniloc appealed that ruling and a federal appeals court last year ruled that the case needed to go to trial with regard to two counts. The trial began March 23.

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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Add a Comment (Log in or register) Showing 1 of 2 pages (66 Comments)
by achernow April 8, 2009 3:56 PM PDT
Interesting. I bet this gets settled before appeals.
Reply to this comment
by lil-yankee April 9, 2009 12:40 PM PDT
Yeah, "but Uniloc appealed that ruling and a federal appeals court last year". Sounds to me as if he meant to say "appeal" not appeals like he reported... not to be picky though, just saying
by Mr. Dee April 8, 2009 3:59 PM PDT
YAWN, another day, another Microsoft lawsuit, another get rich quick scheme.
Reply to this comment
by Lerianis3 April 9, 2009 12:55 AM PDT
Yeah, if I was the judge, I would have dismissed this case because the patent should never have been given in the first place.
by Rolker April 9, 2009 3:09 AM PDT
"Microsoft had initially WON a summary judgment ruling, which would have ended the case in its favor, but Uniloc appealed that ruling..."

Please read the article, then comment. They won, there was an appeal, then they lost. Now it is MS turn to appeal. This is how the system works.
BTW, there are lots of other companies that are involved in other patent infringement cases, such as Apple with their multi touch system, IBM, etc. There is nothing special with MS case.
by dctech08 April 9, 2009 10:36 AM PDT
not even pocket change
by manaboulsi April 11, 2009 10:52 PM PDT
Oh yes, and Microsoft does not infringe they just "STEAL FROM THE BEST".
by kcotham April 8, 2009 4:04 PM PDT
I only wish they hit them harder!
Reply to this comment
by viper396 April 8, 2009 11:49 PM PDT
Why? Did Microsoft kidnap your kids, kill your dog, or otherwise do something to you that warrants the hostility? Or are you just another one of those sad individuals who sees the word "Microsoft" and automatically takes sides because you think it somehow makes you belong?
by fazalmajid April 8, 2009 4:23 PM PDT
There is a perverse irony in Microsoft suffering significant monetary damages for the introduction of such a customer-hostile feature...
Reply to this comment
by monkeyfun14 April 8, 2009 4:48 PM PDT
Customer hostile? In what way?

God forbid a company want to make sure someone isn't stealing their product.
by Mr. Dee April 8, 2009 4:58 PM PDT
Activation takes less than 20 seconds, majority of machines already come activated, you don't have do it manually, the OS or Office suite will do that automatically over the Internet, so hush up Capn' Crunch.
by unknown unknown April 8, 2009 5:35 PM PDT
@monkeyfun14 treating customer as criminals in any form is quite hostile. Microsoft's activation demonstrably does not prevent or stop copyright infringement. The activation scheme has been bypassed and the only people Genuine Advantage annoys are paying customers. It's like DRM, wholly ineffective.
by monkeyfun14 April 8, 2009 5:40 PM PDT
They're not being treated as criminals game makers and other companies have been doing the same damn thing for years so how is MS any different?

Activation takes under a minute and your done if you genuinely bought the product should you not be worried?

You must assume people are criminals if you lock your car or lock your house its the same concept...
by thenet411 April 8, 2009 7:12 PM PDT
@unknown unknown - Oh you mean how the MPAA treats us all like criminals the way they put that stupid FBI warning before every movie you have legally purchased and doesn't deter piracy one bit? Is that what you mean? Get your facts straight before you try and talk to people. Otherwise, you look like an idiot.
by Lerianis3 April 9, 2009 12:57 AM PDT
No, he doesn't look like an idiot. The fact is that ALL those things are treating the customer like they are criminals or potential criminals. That is BLATENTLY consumer hostile. The only idiots here: monkeyfun14, Mr. Dee, and thenet411.

Frankly, the INSTANT I buy a game..... CRACKALACKA! Because I am NOT going to allow any company to tell me what I can and cannot do with my legal bought product via their DRM. They can stick that up their butts like it is a 40 foot long, rezor-sharp pole!
by odubtaig April 9, 2009 3:38 AM PDT
unknown unknown: I'd say it's exactly like DRM. Like, identical.

Time and time again it has been demonstrated that DRM does not work. Stardock are, in the meantime, laughing all the way to the bank with zero DRM and six figure sales.

In the meantime, Mr Dee seems to have forgotten the number of legitimate customers who were locked out of Windows when WGA was introduced (is that still happening BTW?). Nope, not customer hositle at all.

Lerianis3: Agreed. Had one game where the install disc was slightly unbalanced, insisted on the disc not only being in the drive but constantly spun up which made a lot of noise. One download later and the silence was truly golden.
by hollyallision April 10, 2009 4:07 PM PDT
Bingo ! I think alll this angst is funny. My inituial reaction to reading article was hmmm. appeal a jury verdict ? Sour loosers or do Billy & Boys want to meet Bubba ?".....Sounds like a country western song (but in the end, pun intended, the dog will come home, the wife will change her ways the truck will fix itself, and we PC staunch advocates will be paying ...and paying..........and paying for all of it)
by unknown unknown April 10, 2009 6:35 PM PDT
@thenet411

"Oh you mean how the MPAA treats us all like criminals the way they put that stupid FBI warning before every movie you have legally purchased and doesn't deter piracy one bit?"

To a much lesser extent, perhaps. Of more concerned is DRM on the disc and in the player.

"Get your facts straight before you try and talk to people. Otherwise, you look like an idiot."

You have yet to call into question any fact I mentioned in my post. You may want to actually make a point before implying someone has their facts wrong or that they look like and idiot, otherwise you end up looking like the idiot.
by unknown unknown April 10, 2009 7:07 PM PDT
@monkeyfun14

"They're not being treated as criminals"

How so? When one installs a copy of Windows one has to enter a license key then either by telephone or internet contact Microsoft and prove the copy is legitimate before being allowed to use it more than 30 days. One has to repeat this practice if the hardware is changed so much in a six month period. If you run Windows update you'll probably get Genuine Advantage which calls home every so often to make sure the current installation of Windows has not some how become a pirate version since it was installed.


"game makers and other companies have been doing the same damn thing for years so how is MS any different?"

They're not. I've complained about game companies (like EA) doing similar things.

"Activation takes under a minute and your done if you genuinely bought the product should you not be worried?"

The time taken is not the issue. The issue is the presumptions and what happens if Microsoft or a game company decides they do not want to maintain the activation service for a given product. Microsoft has already tried to pull the plug on their music service.


"You must assume people are criminals if you lock your car or lock your house its the same concept..."

Not entirely. No one is paying me nor am I accepting payment for access to either my car or house.

Locks keep honest people honest and present only a minimal barrier to those inclined to steal.
by TinyIoda April 8, 2009 4:37 PM PDT
Judge: Mr. Burns, in light of your unbelievable contempt for human life, this court fines you $3million.
Burns: Smithers, my wallet's in my right front pocket.
...
Burns: Oh, and I'll take that statue of justice too.
Reply to this comment
by sjschaef April 9, 2009 4:37 AM PDT
LOL.. so very true.. and thank you for adding humor to the ridiculous bickering that this article has caused.
by Dalkorian April 9, 2009 3:18 PM PDT
Nice. Like super nice. Flame war going on all around you and you pull out a Simpsons quote. LOL. Way to don the asbestos suit!

SIMPSONS RULE!

Especially Maggie. :-)
by hollyallision April 10, 2009 4:09 PM PDT
hahahahahahahahah....thanks for the "right on" laugh. perfect !!
by wheelie207 April 8, 2009 5:16 PM PDT
I can't believe how Microsoft says they will just ask the court to over turn it. I like to know how Microsoft thinks they do no wrong and that they think they can get their way anytime or anywhere and how they think other patents are invalid. Sure Microsoft, you think your so perfect and you think you get everything your way. I don't think so Monopolistic gorilla.
Reply to this comment
by monkeyfun14 April 8, 2009 5:40 PM PDT
Maybe because other companies have been doing the same thing?
by viper396 April 8, 2009 11:45 PM PDT
Why not? The other company did the same thing and kept appealing until they managed to find a jury that would side with them.
by Lerianis3 April 9, 2009 12:58 AM PDT
Microsoft has a good argument here that this is a patent that is obvious and should have never been given in the first place.
by odubtaig April 9, 2009 3:42 AM PDT
Is it just me or is there a wealth of potential comedy material in that? How many people claiming that Linux infringes MS's patents are the same ones automatically claiming this one to have no merit?

For the record, I'm not convinced it has merit either but that's my overall view on software patents.
by eudefender April 8, 2009 5:25 PM PDT
The other day Microsoft was lobbying for patenting of trivial software and the obstruction of patent reform.
Reply to this comment
by dhavleak April 8, 2009 6:38 PM PDT
Any references for your FUD?
by Collin1000 April 8, 2009 5:45 PM PDT
MS loves to go suit happy and enforce their own patents, but when someone else cracks down on them, they whine like babies.
Reply to this comment
by gsigas April 8, 2009 8:09 PM PDT
I agree although I think $388 Million is ridiculous.
by viper396 April 8, 2009 11:59 PM PDT
Oh please, stop being so stupid with your rhetoric. If you did your homework a majority of these lawsuits are filed against Microsoft, not by them. Most of which are done by some patent trolling group of lawyers with no actual product being sold. Microsoft is usually the target because they obviously have the largest bankroll.
by Lerianis3 April 9, 2009 12:59 AM PDT
Actually, Microsoft does do that.... however, all of THEIR patents are on technologies that patents should have been given for, not these stupid outline patents. Microsoft actually MAKES A PRODUCT with their ideas included into them... most of these other patent trolls are not doing that.
by Dalkorian April 9, 2009 3:26 PM PDT
I promise you Collin, I hate M$ more than you do. Maybe by an order of magnitude or two. But isn't this just politics in business? Name one company that doesn't go suit happy enforcing their own patents while crying like babies when someone cracks down on them?

That said, it makes me smile to see the big convicted monopolist being slapped around. I call it justice, some may call it revenge - but either way it brings a smile to my face. Especially sweet considering WGA is involved - the bitter pill that caused me to choke and gag on M$ trashware to begin with. It's to bad they won't learn from such a small slap, the fine should have been $388 BILLION and a court order breaking the M$ monopoly up.
by DrtyDogg April 8, 2009 6:53 PM PDT
What is funny is that the patent in question actually names Microsoft by name.

"In some circumstances, the "software" or digital data may itself be the operating system environment. Typically, but by no means exclusively, examples of operating system environments include the MicroSoft DOS operating system, the IBM OS/2 operating system or the Macintosh System 7 environment."

They have been sitting on this for 16 years waiting on the payout of whoever took the lead in the OS war.
Reply to this comment
by Maccess April 8, 2009 9:08 PM PDT
None of the Operating systems you mentioned have serial number activation.
by Lerianis3 April 9, 2009 1:02 AM PDT
Doesn't matter, Maccess..... he hits it RIGHT ON THE ******* NAILHEAD that these people have been waiting for almost 20 years for Microsoft to add this and then do a "GOTCHA!" on them.
Patents SPECIFICALLY say that if you don't use them within a year, you lose them! The law and jury were STUPID in this case to not just dismiss the case from the courts and fine this company for trying to abuse the legal system.
by clsmithj April 9, 2009 3:40 AM PDT
If Uniloc gets awarded that much money they better start having a job opening. There's no reason that much money should be allowed to transfer into somebody's pocket.
Reply to this comment
by manaboulsi April 11, 2009 10:58 PM PDT
Really Comorad Lenin?
by umbrae April 9, 2009 6:58 AM PDT
MS should just stop using DRM.
Reply to this comment
by Dalkorian April 9, 2009 3:28 PM PDT
LOL - slave masters rarely give up the whip voluntarily. How else are they supposed to keep you lowly slaves on the plantation?
by BogusBasin April 9, 2009 7:19 AM PDT
Microsoft should close down and give the money back to the shareholders. Amen
Reply to this comment
by hollyallision April 10, 2009 4:10 PM PDT
Bless you, Bogus. My sentiments exactly.

Cold day in ....down there......
since Pigs do fly
by Careakith April 9, 2009 8:46 AM PDT
DOWN WITH PATENTS!
Reply to this comment
by manaboulsi April 11, 2009 10:59 PM PDT
Yes, Let the smart people be side tracked by the strong arm tactics of the thives in businessmen suits.
by Benf April 9, 2009 8:48 AM PDT
388 Million, *burp*, Pocket change for Micro$oft,
Reply to this comment
by dennisl59 April 9, 2009 8:58 AM PDT
I would like to remind everyone the ONLY people that make money from the lawsuits are ???

Now go back to work Drones.

Thank You.
Reply to this comment
by darkpoet25 April 9, 2009 10:32 AM PDT
Lol, exactly. After these shiesty lwayers take their cut the winners of said cases get a fraction of the settlement.
by Akiba April 9, 2009 8:59 AM PDT
It's a stupid patent, but this is a system MS has supported and tried to profit from, so there is some irony. I still disagree with this $388 million scam. Hopefully something like this will help change their views, because when it comes to systems like this, law makers only listen to companies like MS. Also, MS should re-evaluate how they really benfit from DRM. I doubt much of their sales can be attributed to DRM, so now it is turning into a big loss.
Reply to this comment
by Dalkorian April 9, 2009 3:29 PM PDT
Arrogance will blind them to the irony you see so clearly. Funny how that works, isn't it?
by dhavleak April 9, 2009 4:05 PM PDT
That was a nice and humble comment, Dalkorian.
by ServedUp April 9, 2009 9:55 AM PDT
This is just a bee sting. Microsoft can afford the loss but of course they should fight to see if they can get a way with paying less.
Reply to this comment
by Mergatroid Mania April 9, 2009 10:27 AM PDT
That's really funny.

The shoe is on the other foot this time isn't it MS? When MS is awarded a patent that should never have been given, and other companies inadvertently use some of that tech, Ms sues them into the ground. After all it will stifle innovation if people use a 30 year old file system that MS doesn't even use any more (for example), but when MS uses tech another company has patented in whole or in part, deservedly or not, MS will appeal and appeal insisting THEY don't infringe other companies patents.

Poetic Justice.
Reply to this comment
by reyes89 April 9, 2009 11:53 AM PDT
Thats the difference between being big and small.
by lickmoreshoes April 9, 2009 11:48 AM PDT
$388 mill is nothing to microsoft. If that happened to apple, they would have run out of buisness.
Reply to this comment
by reyes89 April 9, 2009 11:52 AM PDT
I agree if u consdier how rich bill gates actually is, imagine he amassed this fortune from recieving maybe a 30% of the total income of microsoft over the years, 388 mill is chump change even in these days, considering the infrigment, they coulda been charged alot more for hte use over the years in damages. Microsoft will probably appeal in another court, win and then settle with uniloc for half of that.
by Motyoj April 10, 2009 2:21 PM PDT
Hardly...
by Inconnux April 9, 2009 3:26 PM PDT
My heart bleeds for them
Reply to this comment
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About Beyond Binary

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft.


Beyond Binary is a look at how technology is changing our lives and the people behind all that life-changing stuff, with an extra emphasis on that which emanates from Redmond, Wash.

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