Thursday, February 22, 2007

Microsoft loses to Alcatel/Lucent

Microsoft Corp. lost a patent infringement lawsuit over violating two patents related to digital music, a federal jury determined on Feb. 22.

From Toronto Daily News:

Microsoft now must pay $1.5 billion in damages to telecommunications equipment maker Alcatel-Lucent SA who said the patents in question govern the conversion of audio into the digital MP3 file format on personal computers.

"We think this verdict is completely unsupported by the law or the facts," said Tom Burt, a Microsoft deputy general counsel, "We believe that we properly licensed MP3 technology from its industry recognized licenser — Fraunhofer. The damages award seems particularly outrageous when you consider we paid Fraunhofer only $16 million to license this technology."


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