September 29, 2009 8:18 PM PDT

Microsoft gets big patent verdict overturned

by Ina Fried
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A federal court on Tuesday reversed an earlier ruling that Microsoft's product activation technology infringed on another company's patent, overturning a $388 million verdict in the case.

In a ruling on Tuesday, the court vacated the earlier decision and decided the case in Microsoft's favor.

"We are pleased that the court has vacated the jury verdict and entered judgment in favor of Microsoft," Microsoft spokesman Kevin Kutz said in a statement.

Tuesday's ruling is the latest twist in a case that has had plenty of them. Microsoft 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 victory in the Uniloc case comes as Microsoft is awaiting the result of an appeal in another patent case in which the custom XML feature in recent versions of Word was found to infringe on patents held by Canada's I4i. If it fails in its appeal bid, Microsoft faces damages of more than $200 million in that case as well as an injunction that would halt sales of word with the infringing feature.

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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by MickBurke September 29, 2009 9:04 PM PDT
Wow, MS steals another one. Shocker.
Reply to this comment
by Seaspray0 September 30, 2009 7:44 AM PDT
They turned me into a newt!
by solicitehere September 30, 2009 8:42 AM PDT
Following Steve Job's model form the very beginning. Poor Xerox.
by Mark_Anderson September 30, 2009 11:38 AM PDT
@Seaspray

I got better. >_>
by McPlot September 29, 2009 9:38 PM PDT
Wow, a poor company sueing a larger company. Name the large company, and there are most likely at least 20 lawsuites pending. The patient trolls, and companies going under trying to find a way to make money, without actually having to be sucessful. Happens on the time.
Reply to this comment
by myles taylor September 29, 2009 10:14 PM PDT
what are patient trolls?
by topgunb2 September 30, 2009 3:56 AM PDT
they are patent trolls with a misspelt i, got it?
by Michichael September 30, 2009 10:20 AM PDT
they're patent trolls that are very patient, waiting years after a company is entrenched and successful to push their case of a feature they "invented" but never produced, demanding royalties.
by odubtaig September 30, 2009 12:57 PM PDT
Wait, they don't only sue people in hospitals?
by tm_anon October 8, 2009 7:37 PM PDT
http://www.i4i.com/

Anyone thinking i4i is a patent troll should do a little research. They developed the tech and are currently using it. They've also looked into OOo and found them to not violate the patent, therefore no lawsuit.

Since i4i is actively using the technology they developed, they're not a patent troll.

A better argument would be had in denying the validity of said patent due to prior art.
by nerdyjen September 29, 2009 10:07 PM PDT
I invented the paperclip guy!!!! Where's my millions?
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by xaduurv September 29, 2009 10:42 PM PDT
No millions for you, but I will give you a kick in the teeth for inventing clippy!
by Seaspray0 September 30, 2009 7:45 AM PDT
@xuduurv. <applause>!
by Been_there_Saw_it_before September 30, 2009 1:29 PM PDT
I agree, Clippy was reported as the single most disliked thing MS ever did. Remember MS advertising jingle, "We know what you want." Well, they did not know me at all. The first thing I do on any computer I touch is to turn off Clippy, frequently to the great delight of the computer's usual user. No one has ever asked to have it turned back on.
by myles taylor September 29, 2009 10:15 PM PDT
I'm in favor of Microsoft on these. Little obscure "features" need to stop being patented. In fact, our whole patent system needs to be fixed.

On the other hand, those who have more money can pay the lawyers and those who pay the lawyers are those who usually win. Anyone watch Boston Legal?
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by JoeF2 September 29, 2009 11:53 PM PDT
Well, Microsoft abuses the patent system just like these "patent trolls."
The FAT patent is a case in point. It was declared invalid, and continues to be invalid in most of the world. Yet MS managed to have it reinstated in the US, and on that basis, got a Dutch company to shell out a lot of money to MS.
The US patent system indeed needs to be fixed, but Microsoft's cases are not poster children for that.
by odubtaig September 30, 2009 3:56 AM PDT
That's true, but I still applaud this ruling, just as I'd still be sympathetic to a mugger who got mugged.
by mistasandman September 30, 2009 1:58 AM PDT
Good for Microsoft!
Reply to this comment
by Dust_Puppy September 30, 2009 5:36 AM PDT
No, good for common sense.

Intellectual property theft (real) is a crappy thing, and if someone really steals it, chances are you didn't have a patent . . . that sort of thing is still wrong though.

The system is just broken; these large awards just encourage people to milk the system, and make real cases look invalid.

Now, if common sense wants to go for round 2 they could:
1) Overturn file sharing cases
2) Throw Vanilla Ice in jail for not paying Queen royalties for stealing their song

:D

Maybe not.
by solicitehere September 30, 2009 8:43 AM PDT
Microsoft keeps rolling along innovating great products. Others are just trying to squeeze money for doing nothing.
by odubtaig September 30, 2009 12:55 PM PDT
Correction to 2)

Throw Vanilla Ice in jail for crimes against music.
by richard993 October 1, 2009 1:57 AM PDT
Because MS has such a bad reputation, it has lost a number of cases which I would have classified as obvious inventions. Unfortunately it had won a lot of cases it should have lost (such as Apple vs Microsoft in relation to Mac OS).

There are always cases of prior inventions for many silly patents out there, including the Activation case. Other patents such as using an "XML markup to describe a document", are obvious to a techie, but to normal people (such as a jury), it may be difficult to get them to understand both the implication of the patent (especially to current software applications using similar methods) and how the underlying basis of the patent is something that any techie could have come up with given than XML is already an open standard.

In this particular case, I would say yes, good for Microsoft. I'm glad they won this case because I too, could have been sued as well as at least one million other programmers out there who have programmed XML, used content management software, or developed any sort of meta tagging system for documents. How pathetic.
by Super2online September 30, 2009 5:39 AM PDT
The merits of a patent case, just like anything else, have to be taken on a case by case basis. For the plantiff and the defended, one will win and the other loser, but the only real winners are the lawyers. I have a son wanting to be a lawyer and I told him go for it because you're always going to live a decent life as long as their is a justice system that pays those guys so well.
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by 0ri0n September 30, 2009 5:51 AM PDT
Without knowing the actual merits of the case challenging Micro$oft, its difficult to logically pick the right side in this. That being said, its not unusual to expect the money of Micro$oft to win out all the time.
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by sparrowhyperion September 30, 2009 6:24 AM PDT
The best justice that money can buy...... I think that I am going to be sick... These Mega companies get away with anything and everything.
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by solicitehere September 30, 2009 8:44 AM PDT
Please stop using your product, unless it's Linux. If these companies didn't exist, we would not be discussing these things right now. FIgure it out.
by weegg September 30, 2009 7:56 AM PDT
Software should never be allowed to be patented.

Also, all patents should have a much shorter life-span (5yrs or less)
Reply to this comment
by wjsteele September 30, 2009 12:12 PM PDT
5 years or less doesn't give a company like mine enough time to develop the product and bring it to market to allow enough income to be generated to recoup the investment. I have one patent, one product and 6 people in the entire company. Our expenses for engineering alone are over 1/2 a million so far and our product still is not ready for market.

It will take us a several years of brisk sales to recoup the investment. This product is not a profit center, it is a life saving device for small aircraft, which is why we keep on.

I might add, the US Constitution (which grants the right to have patents) does not specify a time. It's interesting that copyright is so much longer than patents. It seems to me that they should be equal durations because the Constitution mentions them in the same passage.

Bill
by tuckbodi September 30, 2009 6:34 PM PDT
Guess me got another judge with a new cadilac in the driveway courtesy of M$. Pretty soon they can have a parade...
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by Ronald J Riley October 6, 2009 6:43 PM PDT
Isn't it obvious by now that Microsoft and other members of the Coalition for Patent Fairness are serial infringers?

Ronald J. Riley,


I am speaking only on my own behalf.
Affiliations:
President - www.PIAUSA.org - RJR at PIAUSA.org
Executive Director - www.InventorEd.org - RJR at InvEd.org
Senior Fellow - www.PatentPolicy.org
President - Alliance for American Innovation
Caretaker of Intellectual Property Creators on behalf of deceased founder Paul Heckel
Washington, DC
Direct (810) 597-0194 / (202) 318-1595 - 9 am to 8 pm EST.
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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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