Law Vibe

From p2pnet:

Bill and the Boyz have the distinction of achieving a ‘first’ in the world of patents.

In the world’s largest award for patent violation, Microsoft has been ordered to pay France’s Alcatel-Lucent the grand total of $1.52 billion for improperly using Alcatel-Lucent audio technologies in the Windows Media Player, including the version in the new Vista operating system.

On top of that, Alcatel-Lucent, the world’s biggest maker of communications equipment, can also ask for an order barring Microsoft from using the patented technology, says Bloomberg News.

“Alcatel-Lucent’s victory also may clear the way for legal actions against hundreds of companies that rely on MP3, the standard for playing music and sound files on a computer, mobile phone or digital-music player,” says the story.

However, the $1.52 billion, which represents a mere six weeks or so of free cash flow for Microsoft, observes Bloomberg dryly, may be halved if it wins an unrelated case currently before the Supreme Court, “that could alter how patent damages are calculated for software companies with overseas sales”.

“Microsoft, which had almost $29 billion in cash and short- term investments as of Dec. 31, said it will ask U.S. District Judge Rudi M. Brewster to overturn the verdict and will seek further review in an appeals court if necessary,” says the story.

Alcatel-Lucent will decide later whether to seek to block Microsoft from using the technology, says Bloomberg, adding:

“The dispute started in 2002 when Lucent sued computer makers Gateway Inc. and Dell Inc. over technologies including this one. Microsoft joined the case because it may be obligated to reimburse Dell and Gateway for any damages they have to pay. The trial over MP3 was between only Microsoft and Alcatel-Lucent.”

The case is Lucent Technologies Inc v Gateway Inc, 02cv2060, US District Court for the Southern District of California (San Diego).