Tuesday, October 9, 2007

Judge overturns US$1.5b Microsoft decision

A US judge has thrown out a US$1.5 billion (A$1.74 billion) jury verdict against Microsoft, overturning a ruling that the company had infringed intellectual property owned by telecommunications vendor Alcatel-Lucent.

A San Diego jury in February found that Microsoft had breached two Alcatel-Lucent’s patents related to MP3 music file formats. The jury then awarded Alcatel-Lucent the largest patent damages award in history.

But US District Judge Rudi Brewster, in a 43-page ruling issued on August 6, said the damages sum awarded against Microsoft could not stand because the jury had erred in law and that Microsoft had not infringed one of the two patents.

“The Court finds that the jury's verdict of infringement was against the clear weight of evidence,” Judge Brewster wrote in the court documents.

Microsoft had sought either a reversal of the jury ruling, a drastic reduction in the damages, or a new trial.

“Today's ruling by the judge reversing the jury's $1.52 billion verdict against Microsoft is a victory for consumers of digital music and a triumph for common sense in the patent system,” said Microsoft general counsel Brad Smith.

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