Microsoft ordered to pay $1.5 billion in MP3 audio patent lawsuit
Posted by Dennis Sellers 
Feb 22, 2007 at 5:46pm
Ouch. A federal jury in San Diego has ordered Microsoft to pay $1.5 billion to Alcatel-Lucent in a patent dispute over MP3 audio technology used in Windows, reports CNET
In its verdict, the jury assessed damages based on each Windows PC sold since May 2003. The case could have broader implications, should Alcatel-Lucent pursue claims against other companies that use the widespread MP3 technology, says CNET. About half of the damages are for overseas sales of Windows, which could be affected by a separate patent case. That case, currently before the Supreme Court, deals with whether overseas sales of software products should be subject to U.S. patent law.
Microsoft told CNET it believes that it properly licensed MP3 technology from Fraunhofer, paying that company $16 million. Fraunhofer is a German company that for years licensed MP3 technology patents to those who wanted to use the audio format in their products. It has since handed the MP3-licensing duties over to Thomson. The case dates back to 2003, when Lucent sued PC makers Dell and Gateway over their use of the audio technology. Microsoft stepped into the legal fray and has been embroiled in a widening legal battle with Lucent (now Alcatel-Lucent) ever since, notes CNET.
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
Jarod Says:
Well this is definately music to my ears ;-)
Posted on February 22, 2007