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  Microsoft and TomTom settle patent dispute
Time: 11:32 EST/16:32 GMT | News Source: News.com | Posted By: Andre Da Costa

Microsoft and TomTom announced on Monday that they have reached a settlement in their respective patent suits. As part of the deal, TomTom will pay Microsoft for coverage for the software maker's mapping-related patents as well as the file management patents that Microsoft claimed were infringed by TomTom's use of the Linux kernel. Microsoft will also get access to the TomTom patents that were cited in TomTom's countersuit against Microsoft, although Microsoft won't be making any payment to TomTom.

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#1 By 92283 (142.32.208.232) at 3/30/2009 11:53:54 AM
Latch's Head: BOOM!

#2 By 1896 (68.153.171.248) at 3/30/2009 12:18:56 PM
And the lawyers bills amount to....

#3 By 15406 (216.191.227.68) at 3/30/2009 3:01:38 PM
I can understand why TomTom, a weak company with a heavy debt load, couldn't stand up to the bully Microsoft. But at least they didn't completely sell out like Novell did. I wonder when we'll see MS sue IBM and Google for infringing the FAT patent?

#4 By 3 (86.1.33.75) at 3/30/2009 3:55:52 PM
Hope they didn't get screwed for too much as I love TomTom's devices!

#5 By 92283 (70.67.3.196) at 3/30/2009 4:55:31 PM
Its nice to see TomTom admit that Linux infringes on Microsoft patents.

#6 By 23275 (24.196.4.141) at 3/30/2009 7:54:12 PM
#5, What is it called under the law? Pres d'ici? (to connect to others, if I recall) - the establishment of president. I think you nailed the strategy - as this case does exactly that and forms the basis for further actions under the law. Any lawyers out there to help assess this? Fritz, your Latin is pretty good - what say you?

Very astute of you, NotParker!

#7 By 15406 (72.140.218.146) at 3/30/2009 8:06:23 PM
#5: They did no such thing. They saw that they would have been bankrupted by fighting MS and took the only way out they could while still being an ongoing business.

#6: The word is 'precedent'. And, as it stands, the settlement in no way validates any MS patents, nor does it imply that TomTom infringed on anything. MS made claims that never got tested in a court of law because TomTom could not afford the fight. That's why MS picked on TomTom and not someone with the resources to fight. MS knew their VFAT patent would likely be found to be invalid, but it was good for the FUD value alone for MS to include the VFAT ones in the list. It's also a fine example of a submarine patent. If MS is so concerned about their precious VFAT patent, why did they sit on it for more than a decade, all the while allowing it to become ubiquitous, and THEN start suing?

#8 By 23275 (24.196.4.141) at 3/30/2009 8:45:29 PM
Latch, on the contrary, I think it will be assessed legally, that precedent is only part of what was accomplished and by having one party validate their position, it sets the stage for additional actions - hence the reference to the attachment.

We'll see how it plays out, and if/when they use what has been accomplised.

#9 By 1896 (68.153.171.248) at 3/30/2009 11:30:43 PM
#6 Iketchum: I was a joke about the fact you repeated several times the word "Vomit" about the "Cloud manifest".
Litteraly the translation means "repeating help" menaing that repeating a concept could help its comprehension.
I completed all my studies in Italy and Latin was mandatory in the three years of mid school (mostly grammar) and the five years ih high school (Poetries, tragedies and philosophy).
Obviously I have never been able to speak it; Catholic priests were used to converse in Latin but nowadays it is very rare among them too.
It is quite difficult because it declines all the nouns and pronouns similarly to the "Hoechst Deutsch" although, at least, in Latin you do not split the verbs.

#10 By 23275 (24.196.4.141) at 3/31/2009 7:25:01 AM
#9, Thanks Fritz, yeah, my Latin stinks, but I do try. I love languages and have made them a life-long study. I've asked a few friends who are trial lawyers and or judges and they each conclude that what Microsoft accomplished here is significant.

#11 By 1896 (68.153.171.248) at 3/31/2009 7:57:24 AM
Well, considering that the legal system in the US is based on the "Common Law" principles I would thinks it is important too.
What I do not understand is why, if this was important, other big players have not stepped in supporting Tom Tom.
Either way I am missing something or these big companies have very "distracted" legal counsels.

Wait, there is a third scenario! Lawyers from all sides are very well aware of the situation and the potential developments.... and are waiting to start the billing frenziness when the entire issue will have grown as much as possible.

This post was edited by Fritzly on Tuesday, March 31, 2009 at 07:57.

#12 By 92283 (70.67.3.196) at 3/31/2009 10:04:43 AM
#7 They caved. In just a few days. They knew they were busted. They surrendered.

Linux is a HUGE LOSER here. Just like you.

#13 By 15406 (216.191.227.68) at 3/31/2009 10:10:04 AM
#8: Well, it goes without saying that you would 'assess' in favour of Microsoft. However, no precedent was set as there was no judgement. All that happened here was a large predator bullying a weak company into submission. It happens every day, unfortunately, in other industries. Funny how just the other day you were arguing how legal relief in the US isn't just for the rich. If MS wanted to actually set a precedent, they would push it through to the end. That wasn't their intent here based on who they picked as a target. Let them try it with IBM, Google or a host of other well-heeled companies that use/distribute the Linux kernel and see what happens. I suspect that the FOSS community isn't going to just let this drop either, and they will start working in earnest to invalidate any patent that MS might use against Linux (assuming MS ever tells anyone what those patents are) starting with VFAT.

#14 By 92283 (142.32.208.232) at 3/31/2009 11:13:45 AM
#13 Poor little TomTom ...

•Market leader in Portable Navigation Devices (PNDs)
•Founded in 1991, publicly listed in 2005
•Revenue 2008 €1,674 million
•Offices in Europe, North America, Middle East, Africa and Asia Pacific.
•Over 3,300 employees

http://investors.tomtom.com/overview.cfm?Language=4

Oh wait ... that was a Latch bull**** comment.

Taking legal advice from Latch is like taking dieting advice from Oprah.

"TomTom's annual revenue grew from €8 million in 2002 to €1,674 million in 2008. We are a highly cash generative company with cash generated from operations of €463 million in 2008."

They could afford lawyers if they thought they were on firm legal grounds.

This post was edited by NotParkerToo on Tuesday, March 31, 2009 at 11:24.

#15 By 23275 (24.196.4.141) at 3/31/2009 11:21:18 AM
#13, well quite obviously your mind does not have a deep end, so let me ease on over to the shallows for you. Do you not see that the establishment of precedent in this case has an import that would impact all others big and small(er) [NotParker points out that TomTom isn't quite as small as you'd like to point it].

You know Latch, populist BS never lasts very long. It never will. It does hurt a lot of people though.

#16 By 15406 (216.191.227.68) at 3/31/2009 12:20:03 PM
#14: "TomTom has kicked off the year with a stunning loss of 989 million euros ($1.3 billion) for the fourth quarter of 2008 and a still larger debt mountain, at 1.1 billion euros ($1.4 billion), its latest figures showed Tuesday."

http://www.forbes.com/2009/02/24/tomtom-gps-garmin-markets-equity-0224_technology_06.html

"Shares in TomTom NV (38705.AE) fell Tuesday after the navigation solutions provider reported a fourth-quarter net loss, announced further cost cuts and cautioned that under certain conditions it could breach its loan covenants.

"Based upon the group's plans for 2009, management expects to comply with the loan covenants. However, given the uncertainties in the wider macro-economic environment and their knock-on effect on consumer spending, scenarios can be envisaged where the loan covenants could be breached," said TomTom Chief Executive Harold Goddijn in a statement.

"As a result, the company continues to evaluate options aimed at remaining within its loan covenants under a variety of possible scenarios, which could include renegotiating the terms of the facility in isolation or in combination with other actions," he said.

In an interview with Dow Jones, Goddijn wouldn't elaborate on what "other actions" could mean, but some analysts speculate that should TomTom breach debt covenants it might consider launching a rights issue, taking out a third-party loan, selling a stake in TeleAtlas or issuing a convertible bond.

TomTom's net debt was reduced by EUR213 million from the third quarter and at the end of the fourth quarter stood at EUR1.12 billion."

http://online.wsj.com/article/BT-CO-20090224-704317.html?mod=wsjcrmain

Go ahead and invest in them if you're so sure they're liquid.

#15: Um, I never said they were small; I said they were weak with a large debt. And you've once again refused to address anything I've said and instead just keep reiterating the same old nonsense about a precedent being set when no such thing has happened.

If I'm in the shallow end, you're still on the deck trying to figure out the front of your bathing suit from the back.

#17 By 92283 (142.32.208.232) at 3/31/2009 1:52:46 PM
The headline from your first link: "The Dutch GPS device maker posts a $1.3 billion loss owing to its Tele Atlas purchase.

The Amsterdam-based company said it had no regrets about spending 2.9 billion euros ($3.7 billion) on the digital map maker but acknowledged it had overpaid for it. For the fourth quarter, TomTom was forced to write down more than a third of Tele Atlas's value."

Yup. They made a dumb purchase and had to write it off.

If they had 3.7 billion for acquisitions, they could have come up with a million for lawyers if they had a firm legal standing.

They didn't, so they gracefully surrendered and acknowledged they were violating Microsofts patents on long file names.

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