Microsoft Helps Makers Defend Against IP Suits

TinBromide writes "Microsoft will pick up IP lawsuit defense costs for companies that make windows devices. In light of all the IP suits flying around, it would appear as though Microsoft is picking sides and it might be better to side with Goliath when facing a patent wielding David." From the article: "Microsoft lifted caps on the amount of legal fees it would reimburse to makers of embedded devices that are sued for intellectual property infringement as a result of licensing Microsoft code. The amount had previously been capped based on Microsoft's volume of business with a device maker that licensed its embedded operating systems. Microsoft also said it would indemnify device makers against trade-secrets lawsuits, in addition to patent, copyright, and trademark suits."

Comments

This is not that big of a deal for MS

[Edmund Blackadder]

If you read the article it says that Microsoft will reimburse legal costs for any infringement that results from use of microsoft software. So essentially they will reimburse when their software infringes.

The key is this -- a patent holder will always sue the party with the deep pockets. And when MS software infringes MS is liable as well as the embedded device maker that licenced the code. And lets face it, Microsoft has deeper pockets than any embedded device maker out there. Thus, it is 99% certain that whoever sues an embedded device maker for patent infringement of their software code will also sue microsoft. Now since Microsoft will have to pay to defend themselves anyway, they would not incur much additional costs in taking over the defense of their client as well.

Now, even if the patent holder sues only the embedded device maker and not Microsoft, MS would still have a big stake in the case, because if the patent holder wins that will make it easier for them to win against Microsoft in the future. Thus, MS would probably prefer to join the defense of that case as well.

Thus, this policy does not really cost microsot much in addition to what they would have to incur for patent defense even if the policy was not there.

But it still does provide embedded device makers with some help. Note also that if the embedded device maker loses the case, MS does not agree to reimburse the judgements, or the costs of injunctions and that is what may kill RIM, not the legal fees.