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Microsoft ordered to pay $1.52bn over MP3 patent infringements

Written by James Delahunty (Google+) @ 23 Feb 2007 14:29 User comments (10)

Microsoft ordered to pay $1.52bn over MP3 patent infringements 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

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10 user comments

123.2.2007 15:29
Colbybear
Inactive

$1.52 Billion! Even the all mighty mircosoft would feel the difference in their wallet's weight after that blow.

223.2.2007 21:39
OzMick
Inactive

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...

This message has been edited since its posting. Latest edit was made on 23 Feb 2007 @ 21:45

324.2.2007 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...

424.2.2007 10:29

This article is confusing me. What exactly did Microsoft do with the MP3 technology??

524.2.2007 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.

624.2.2007 10:58

Right. Thanxs for the clarification Zippy. :)

724.2.2007 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.

824.2.2007 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.

This message has been edited since its posting. Latest edit was made on 24 Feb 2007 @ 19:23

924.2.2007 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.

1028.2.2007 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..?

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