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Microsoft ordered to pay $1.52bn over MP3 patent infringements

23 February 2007 14:29 by James "Dela" Delahunty | 10 comments

In a case that may have set a bad precedent, Microsoft Corp. has been ordered to pay French phone equipment firm Alcatel-Lucent a sum of $1.52 billion for allegedly infringing two audio patents. Alcatel originally sued Microsoft for breaching two patents covering standards used for converting audio into MP3 files.

Microsoft was shocked by the federal jury's decision, saying it was "unsupported by the law or facts". Alcatel was very pleased with the San Diego court's decision. "We made strong arguments supporting our view " said an Alcatel-Lucent spokeswoman. However, Microsoft has already licensed the MP3 technology in a $16 million deal with Fraunhofer.

"We are concerned that this decision opens the door for Alcatel-Lucent to pursue action against hundreds of other companies who purchased the rights to use MP3 technology from Fraunhofer, the industry-recognized rightful licensor," said Microsoft lawyer Tom Burt.

Source:
BBC News

Permalink to this article

Microsoft denied appeal in patent case (21 June 2008)

Xbox 360 does not violate Alcatel patents, rules jury (5 June 2008)

Microsoft didn't infringe video patent, will appeal jury's decision on others (5 April 2008)

Apple, Samsung & Sandisk sued for patent infringement (26 February 2007)

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Discuss this article!
Colbybear (Inactive) 23 February 2007 15:29
$1.52 Billion! Even the all mighty mircosoft would feel the difference in their wallet's weight after that blow. [ + quote]
OzMick (Senior Member) 23 February 2007 21:39
It'll get overturned in appeals court, the courts aren't going to set a precedent like this. Maybe they should consider giving thought to open codecs like OGG, would solve a lot of problems... [ + quote] This message has been edited since posting. Last time this message was edited on 23 February 2007 21:45
DVDBack23 (Staff Member) 24 February 2007 3:45
Originally posted by OzMick: It'll get overturned in appeals court, the courts aren't going to set a precedent like this. Maybe they should consider giving thought to open codecs like OGG, would solve a lot of problems... ^^^ hes right...theres no way this gets through appelate court... [ + quote]
borhan9 (AfterDawn Addict) 24 February 2007 10:29
This article is confusing me. What exactly did Microsoft do with the MP3 technology?? [ + quote]
ZippyDSM (AfterDawn Addict) 24 February 2007 10:55
borhan9 I believe it has something to do with their codec that can make a MP3,they might use soem of it to make WMA files or such. [ + quote]
borhan9 (AfterDawn Addict) 24 February 2007 10:58
Right. Thanxs for the clarification Zippy. :) [ + quote]
ZippyDSM (AfterDawn Addict) 24 February 2007 11:08
Originally posted by borhan9: Right. Thanxs for the clarification Zippy. :) I might be wrong but I cant think what else it would be. [ + quote]
Skitzy (Member) 24 February 2007 19:21
Appeal, appeal, a pill.. it would take a great big pill to get over that one.. lol.. nah' We all know that one is gonna be overturned. [ + quote] This message has been edited since posting. Last time this message was edited on 24 February 2007 19:23
ogryzek (Member) 24 February 2007 20:00
The whole matter shows: 1) how screwy US law has become. 2) how ill equipped are the judges (usually men approaching 'golden years' of their life) when making decisions on cutting edge technological issues. [ + quote]
MS8er (Newbie) 28 February 2007 14:31
If they (MS)wrongfully bought the rights to this technology.. then why not give the rightful owners their share of profits...? The question is did Fraunhofer have the complete control of the patents..? [ + quote]