James Delahunty
23 Feb 2007 14:29
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