Microsoft ordered to pay $1.52B in patent suit (CNNMoney.com)

[eppur_se_muova]

Jury says the software maker infringed on Alcatel-Lucent patents related to digital music technology.

February 22 2007: 6:28 PM EST

NEW YORK (CNNMoney.com) -- A federal jury said Thursday that software maker Microsoft Corp. infringed audio patents held by Alcatel-Lucent and should pay $1.52 billion in damages.

Tom Burt, Microsoft corporate vice president and deputy general counsel, said the verdict was unsupported by law or facts.

"Today's outcome is disappointing for us and for the hundreds of other companies who have licensed MP3 technology.

"We will seek relief from the trial court, and if necessary appeal," Burt said.
***
more: http://money.cnn.com/2007/02/22/technology/microsoft_alcatel/index.htm?cnn=yes

on edit: now at BBC, http://news.bbc.co.uk/2/hi/business/6388273.stm

Alcatel had sued Microsoft, saying two patents related to the standards used for converting audio into MP3 files had been breached.

Microsoft said it had already licensed the MP3 technology, paying $16m to a German firm 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.

[jollyreaper2112]

1. feh

No worries, they'll just buy that company up quick as you please.

[liquiduniverse]

2. This sets a bad precedent

It could mean the end of the widespread use of the MP3 audio format as Alcatel-Lucent starts suing other companies like Apple, Real Networks, MP3 player makers and other software companies. If no legislative action is taken, software patents may soon destroy the tech industry in the US.

Maybe it's time to start looking for an Ogg Vorbis player.