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Microsoft hit with $1.5 billion patent verdict | |
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| Time: 20:12 EST/01:12 GMT | News Source: News.com | Posted By: Jonathan Tigner | ||
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A federal jury in San Diego has ordered Microsoft to pay $1.5 billion to Alcatel-Lucent in a patent dispute over MP3 audio technology used in Windows. In its verdict, the jury assessed damages based on each Windows PC sold since May 2003. The case could have broader implications, should Alcatel-Lucent pursue claims against other companies that use the widespread MP3 technology. An Alcatel-Lucent representative praised the ruling. "We made strong arguments supporting our view, and we're pleased with the court's decision," spokeswoman Mary Lou Ambrus said. Microsoft said it believes that it properly licensed MP3 technology from Fraunhofer, paying that company $16 million. Fraunhofer, which helped develop the MP3 compression technology along with Lucent's Bell Labs, has licensed its intellectual property to companies that want to use the audio format in their products. Fraunhofer has since handed the MP3-licensing duties over to Thomson. Related: | ||
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| #1 By 2960 (24.254.95.224) at 2/23/2007 7:30:56 AM |
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While this whole thing looks bogus to me (how can you be sued for something you paid for?), one statement is a bit interesting:
"In its verdict, the jury assessed damages based on each Windows PC sold since May 2003. The case could have broader implications, should Alcatel-Lucent pursue claims against other companies that use the widespread MP3 technology." Looks like Microsoft's iron-fisted approach at making sure every PC sold has Windows on it has turned around and bit them in the ass. This could have ramifications for other companies as well, such as Apple, but we'll have to see on that. TL |
| #2 By 37047 (216.191.227.68) at 2/23/2007 8:21:59 AM |
| I usually have a problem with the tactics used by MS, but in this case, I am not sure what they did wrong. If they licensed the technology from Fraunhofer, then they should be licensed for all MPEG-1 Audio Level 3 patents. That is the point of having a central licensing point regarding all MPEG licenses. I'd certainly like to know more about what exactly it was that MS infringed on, and why it was not covered under the Fraunhofer license. The whole point of the single point of licensing is so that you don't have to negotiate with a bunch of different companies and individuals to get licenses for each patent separately. |
| #3 By 32132 (64.180.219.241) at 2/23/2007 10:09:53 AM |
| I wonder what will happen when Apple has to pay for each iPod sold? |
| #4 By 2960 (24.254.95.224) at 2/23/2007 3:50:45 PM |
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In other news....
[Humor Begin] Microsoft announced today that the price of Windows Vista Ultimate was being increased to $699.00... [Humor End] TL |
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