Microsoft to Pay $1.52 Billion in Patent Suit Damages

An anonymous reader writes "A U.S. federal jury found that Microsoft Corp. infringed audio patents held by Alcatel-Lucent and should pay $1.52 billion in damages, Microsoft said Thursday. The news comes after reports that U.S. Supreme Court justices expressed doubts about whether Microsoft Corp. should be liable for infringing AT&T Inc. patents in Windows software sold overseas."

Comments

Good

[pohones]

That's what happens to companies that vandalize copper cables from others!

$1.5b is nothing

[everphilski]

From BusinessWeek:

There are a few reasons a $1.52 billion ruling might not scare investors away from a $287 billion company. Microsoft generates so much cash that in 2004 the company paid a $32 billion dividend. Analysts said $1.52 billion represents about six weeks of Microsoft's cash flow.
Goldman Sachs analyst Rick G. Sherlund wrote in a client note the damages are "not particularly meaningful" for Microsoft. Even if Microsoft pays the full amount, Sherlund said $1.52 billion equates to about 15 cents of Microsoft's stock.
And it's not clear whether Microsoft will have to pay the full amount, at least this year. Patent-infringement cases "typically go through prolonged appeal processes," said Bear Stearns analyst John DiFucci in a research report.