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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."

43 of 170 comments (clear)

  1. Which way will /. go? by gravesb · · Score: 4, Funny

    Microsoft being penalized or software patents being eliminated? Its like torture! Which way will we go!

    --
    http://bgcommonsense.blogspot.com
    1. Re:Which way will /. go? by Chris+Burke · · Score: 5, Insightful

      Oh, that's easy! Ideally Microsoft pays the fine first, once again getting bit in the ass by software patents, and thus becomes an even greater force against software patents. Software patents are eliminated, and both MS and Free Software folks have a big party together with beer kegs and streamers and drunken install CD swapping.

      Then Microsoft gets fined another $1.5 billion, for being jerks. Then another billion for being assholes. Then another billion for each chair Ballmer has thrown.

      But seriously, I think them being penalized goes great with getting rid of patents. The more evidence that software patents are a hindrance to the software industry the better.

      --

      The enemies of Democracy are
    2. Re:Which way will /. go? by TheRaven64 · · Score: 2, Informative
      In the other software patents article, I pointed out that MS had lost around a billion dollars to software patents last year. Looks like they're well ahead of that this year already.

      Anyone still want to claim that it makes sense for MS to be in favour of software patents?

      --
      I am TheRaven on Soylent News
    3. Re:Which way will /. go? by MaggieL · · Score: 4, Insightful

      If Microsoft did start using patents offensively it would almost certainly end up suing one of its own customers and technology folk the world over would start getting very nervous about their investment in Microsoft software.

      Customers and technology folk who aren't already very nervous about their "investment in Microsoft software" either haven't been paying attention or don't have any such "investment".

      Personally, I'd use the term "vulnerability" rather than "investment".
      --
      -=Maggie Leber=-
    4. Re:Which way will /. go? by Tim+Browse · · Score: 4, Informative

      The problem is, of course, is that Microsoft has *never* used patents offensively.

      You and other slashdot posters can keep saying that, but that doesn't make it true.

    5. Re:Which way will /. go? by Speare · · Score: 4, Informative

      Another case where Microsoft used patents offensively: FAT drive formatting and Long Filename FAT extensions. http://www.dpreview.com/news/0312/03120403microsof tisfat.asp Doesn't seem so defensive here.

      --
      [ .sig file not found ]
    6. Re:Which way will /. go? by Paradise+Pete · · Score: 4, Informative
      $1.5 billion is a lot of money, even for Microsoft

      Yup. Based on last year's gross profit they're going to have to save up for almost 15 days to pay that off. That's gotta hurt. That's like a whole paycheck right down the drain.

    7. Re:Which way will /. go? by maxume · · Score: 2, Funny

      Services, all the way down.

      --
      Nerd rage is the funniest rage.
    8. Re:Which way will /. go? by Wolfbone · · Score: 4, Insightful

      As others have pointed out, it is not true that Microsoft has never used patents offensively. It is also a fact that the vast majority of patent disputes never end up in Court: licensing or cessation of infringement are the only economically realistic options for most alleged infringers. Finally, as Microsoft's VP of IP, Marshall "Father of the IBM tax" Phelps could tell you, a company with a large enough patent portfolio can gain more from the dysfunctional patent system than it loses. In fact it can derive a significant strategic advantage.

    9. Re:Which way will /. go? by jkrise · · Score: 3, Insightful

      both MS and Free Software folks have a big party together with beer kegs and streamers and drunken install CD swapping

      I can picture the scene...
      MS: Have some more beer... no more patents to file... all our IP goes down the drain.
      Hippie 1: I don't drink branded beer.. only Open Source beer.
      Bruce: I told you so... patents are like spitting in the wind. I've brought my own beer along, rejoice!
      RMS : I only touch Free Beer. Make it GNU Free Beer and I'll drop plans for GPL3.
      MS: No need to pay lawyers anymore... billions saved every year... some more beer, anyone?
      Linus: I take back whatever nonsense I spoke about Patent Pools. Maybe RMS is right after all?
      ESR: I think I'll start writing FetchBeer now...
      Moglen: Patents may be gone, but copyright still remains.. and DRM, DMCA as well. Can I have some free beer?
      Ballmer: I've brought a chair for all of you!

      --
      If you keep throwing chairs, one day you'll break windows....
    10. Re:Which way will /. go? by mgiuca · · Score: 2, Funny

      Wait wait, is this beer free as in beer? I think RMS goes for the other kind...

  2. Hmmm... by Frosty+Piss · · Score: 3, Insightful

    Well, you know, patents are bad. So even though MS is "evil", supporting this ruling is the wrong way to go... Right?

    --
    If you want news from today, you have to come back tomorrow.
  3. Just another nail in the coffin by gasmonso · · Score: 5, Insightful

    Lately it seems that Microsoft has been spiraling downward at a good pace. From the uneventful launch of Vista to lawsuits like this, I think MS is spending more time on litigation and PR than developing good products.

    gasmonso http://religiousfreaks.com/
    1. Re:Just another nail in the coffin by SpaceLifeForm · · Score: 5, Funny
      Well, sure. A company should focus on their core strengths.

      --
      You are being MICROattacked, from various angles, in a SOFT manner.
    2. Re:Just another nail in the coffin by JonWan · · Score: 5, Funny

      I'm waiting for thr RIAA or MPAA to sue them because "The Windows operating system facilitates copyright infringement".

    3. Re:Just another nail in the coffin by steveoc · · Score: 2, Funny

      Im waiting for the RIAA to sue the MPAA for having a name that sounds similar.

      (or is that the other way around)

      The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.

  4. Black Books by Stevecrox · · Score: 3, Funny

    I dunno I just have to hope when I flip the coin it explodes and kills me

  5. Indemnification by andy314159pi · · Score: 5, Funny

    Yeah I offered them an Alcatel-Lucent MP3 patent Indemnification plan but they said I was just trying to shake them down.

  6. ogg by Anonymous Coward · · Score: 5, Insightful

    even big companies can benefit for adopting royalty-free open standards.

  7. Bill Gates' response by Yeechang+Lee · · Score: 4, Funny

    Bill Gates gets a call while he and his wife are having dinner out. Gates' response after hanging up:

    "Honey? I'll be right back. Steve needs $1.5B so I'm going to go to the ATM across the street. He's waiting outs--I think that's him honking. Can you order the chocolate cake for me for dessert?"

    1. Re:Bill Gates' response by Glacial+Wanderer · · Score: 5, Funny

      "Honey? I'll be right back. Steve needs $1.5B so I'm going to go to the ATM across the street. He's waiting outs--I think that's him honking. Can you order the chocolate cake for me for dessert?"

      Assuming that ATM distributed $20 bills Bill just carried 82 tons of cash from the ATM to Steve's car. I guess he's spent some his of change under his sofa on cybernetic enhancements.

  8. Microsoft argues that source code isn't patentable by lelitsch · · Score: 5, Interesting

    The actual case is actually not half as interesting as Microsoft's and the Justice Department's arguments that source code isn't patentable. "I think the reason that's not relevant here is that the patented invention in this case is not software," [Assistant Solicitor General Daryl ] Joseffer said. "It's computer that has software loaded into it. And the components of a patented invention do not themselves have to be patented." Justice Alito's next question indicated his astonishment. "If these computers are built abroad and are sold with Windows installed, the component is the electrons on the hard drive? That's your position?" Joseffer responded yes, that's the US' position, but no, that's not AT&T's position. "It's the physical embodiment of the software which in some instances is manifested by -- by those electrons," said Joseffer, perhaps broaching for the first time in history the topic of whether electrons are patentable. "Now AT&T's contrary view is that the abstract code in the abstract is the component. The reason that can't be, is that object code in the abstract is just a series of 1's and 0's. In theory I could memorize in my head or write down on a piece of paper. But that's not going to combine with other, with other parts to make a patented invention."

  9. Microsoft and the Law by Macka · · Score: 4, Informative


    What we have learned to date is that Microsoft will never have to pay anything like this kind of penalty. Even if they are guilty, they have already demonstrated their ability to heap appeal on top of appeal until many years from now, technology advancements will have moved the goal posts, effectively rendering the original claim irrelevant.

    Their mastery of the legal system is so complete that were Eliot Ness alive today, Microsoft would be the principal nemesis in The Untouchables 2.

  10. 1.52 Billion????? by scoot80 · · Score: 2, Insightful

    Shit, I don't care how rich Microsoft is.. 1.52 billion? Thats gotta hurt!

  11. I'm scared by Neon+Aardvark · · Score: 5, Funny

    Patents are evil. Microsoft is evil.

    Therefore, Microsoft being slightly hurt because of a patent infrigement ruling == neutral and we can all go home and have a nice cup of tea.

    PS I'm scared because my last post was modded "flamebait", possibly because I accidentally called Canada the "People's Republic of Canuckistan". That hurt.

    --
    Azural - instrumentals
  12. It's not over yet by Anonymous Coward · · Score: 3, Informative

    MS still has a number of appeals. Most importantly, the Federal Circuit has a 30-40% reversal rate in patent claim construction cases. It's too early to say that MS will pay.

  13. Tomorrow's headline by defile · · Score: 2, Funny

    Federal reserve system collapses on Lucent's deposit of Microsoft check.

  14. save that goddam chair by GlitchyBits · · Score: 5, Funny

    Tough days for chairs ...

  15. Re:Forget about the evilness of MS for a moment... by mochan_s · · Score: 4, Interesting

    AT&T Corp. and Fraunhofer agreed in 1989 to develop MPEG-1 Audio Layer 3 technology, now called MP3. Scientists from AT&T's Bell Labs collaborated with Fraunhofer before AT&T spun off the unit in 1996. Bell Labs became Lucent Technologies Inc., which Alcatel SA acquired last year.

    Microsoft accuses Lucent of deceiving the U.S. Patent & Trademark office by having one of the patents reissued and backdated to 1988, removing it from the scope of the 1989 deal with Fraunhofer.

  16. It ain't good by kocsonya · · Score: 5, Insightful

    Chances are, M$, instead of seeing the light and lobby against the patentability of algorithms/math/shapes of clouds/ways of combing hair/etc will just hire more patent lawyers and patent everything remotely connected to computers to build a very thick patent armor and a large caliber cannon too.

    At the end of the day Lucent and Microsoft and all those behemoths will sort it out between themselves and the small players get eliminated.
    The IP lobby gets multiple orgasms, extends patent expiry terms to that of copyright, then extends the copyright to be ahead of patents and generates a new class of IP, the 'unpublished thought'. Since that latter can not be effectively monitored (yet), they introduce a levy (indexed by the education level) to be paid by any cognitive being to the TCAA (Thought Control Association of America); those who can't pay can instead sell themselves to the TCAA, which will export them to Chinese sweatshops as extra cheap slave labour. Persons trying to hide their being educated will be prosecuted as thought terrorist and will be sent to secret CIA torture centres where they will be used for testing new methods of extracting one's innermost thoughts. Skipping school is considered a federal offense and offenders are sent to re-education camps (these can be cheaply leased from Gulag, Inc. a company run by the Russian maffia). People in coma (and thus with no income) but with measurable brain activity will have their organs removed and sold to pay for their thoughts, however, as soon as their EEG goes flat, no more organs can be extracted in lieu of the thought levy. Rather, all remaining organs can be taken by the TCAA as payment of punitive damages for depriving the TCAA of its income by the old trick of being dead.

    Then the ants all go to the Père Lachaise cemetery and spit on La Fontaine's grave.

  17. Yoda would say ... by mochan_s · · Score: 2, Funny

    Has begun, the patent wars.

    1. Re:Yoda would say ... by JoGlo · · Score: 4, Funny
      Begun, the Patent Wars, have!

      There. Is that better?

      --
      Will those of you who think that you know what you are doing, get out of the way of those of us who know what we are doi
    2. Re:Yoda would say ... by mrbluze · · Score: 2, Funny

      Maybe more like..

      Patent wars.. You seek patent wars!... Begun, they have.. hmmm... Take you to them I will.. yesss... Good entertainment... come!

      --
      Do it yourself, because no one else will do it yourself. [beta blockade 10-17 Feb]
  18. This is not just an MS problem by MaxPower2 · · Score: 5, Insightful

    For those of you who are caught up in hating MS, open your eyes and see what this really means. Many other companies licensed the technology from Germany's Fraunhofer. The list includes Apple, Sony, Creative Tech., Napster, and many other companies. This means that if this ruling stands, you will see many other lawsuits in the future related to this technology.

  19. These stories say nothing by rcbutcher · · Score: 2, Insightful

    Neither story actually tells us anything about the alleged issue. They mention MP3, Fraunhofer, speech conversion, Lucent, but zilch about Microsoft-MP3-Lucent-courtcase. Crap journalism.

  20. No more Mp3 by goombah99 · · Score: 3, Interesting

    Worse! it also means MP3 players are unlicensed and you'll now have to use AAC. Too bad for everyone who locked themselves in to a proprietary non_DRM format that will soon lack any new players. Seriously... Can you imagine that ipods are immune to this lawsuits consequences?

    --
    Some drink at the fountain of knowledge. Others just gargle.
  21. Are Microsoft customers protected from Lucent now? by Anonymous Coward · · Score: 2, Informative

    You were joking; but that's exactly the same kind of non-indemnification that Microsoft sells its customers:

    It's very likely that now Microsoft has a license to use MP3 internally; but no right to sublicense it to end users who may still be liable.

    If you think I'm kidding, they've done it before:
        http://www.oreillynet.com/cs/user/view/cs_msg/4306 7

  22. No! Bad Slashdot! by Quantam · · Score: 2, Interesting

    This was posted by an AC earlier, which apparently nobody saw; so let me attempt to be loud enough to get heard.

    This is a bad thing. B-A-D.

    Many, MANY companies have this same deal with Fraunhofer. MS is only the first to be sued. It's very likely that those companies large enough to be worth suing will also be sued in large numbers, after this. The fact that you guys hate MS so much you consider many, many companies getting sued a "haha" matter shows you have a profoundly sick sense of humor.

    --
    You have tried to support your argument with faulty reasoning! Go directly to jail; do not pass Go, do not collect $200!
  23. Good by melted · · Score: 2, Insightful

    A few more of these and software industry will abolish patents on its own volition.

  24. Re:No more Mp3 by Dan+Farina · · Score: 4, Interesting

    That wasn't the point, as I read it. The point is that there may be a strong incentive to make players that don't support MP3 because it's encumbered and the owners doing the encumbering seem willing to exercise the ownership of their patent. In other words, there may be a shift to non-mp3 formats (AAC or say, ogg) for more players, and possible waning of MP3 domination due to incompatibility on players that don't support MP3 to keep cost down.

  25. No problem by Anonymous Coward · · Score: 2, Funny

    If they bought a license, what's the big deal ? All they need to do is recover the relevant emails from their backups.

  26. snerk by trudyscousin · · Score: 2, Insightful

    "We are concerned that this decision opens the door for Alcatel-Lucent to pursue action against hundreds of other companies who purchased the rights to use MP3 technology from Fraunhofer, the industry-recognized rightful licensor," Tom Burt, Microsoft's deputy general counsel, said in a statement.

    Oh! I see! Microsoft is now The Company That Cares!

    Please. Since when has the welfare of another company been of any interest whatsoever to this utterly ruthless behemoth?

    --
    Those who can, do. Those who can't, write technology blogs.
  27. Re:Forget about the evilness of MS for a moment... by Phroggy · · Score: 2, Informative

    This sounds like another reason we should hop on the Open Source file formats. With this ruling, you can't even pay the man for licensing, lest there be another "submarine license" for more money. Man, who wants to make MP3 encoders now? Doesn't matter. Opening the source code won't protect you from submarine patents. Ogg Vorbis might be covered by a patent, that the people who created Ogg Vorbis aren't even aware of, and whoever owns that patent could sue you for infringement, and win.

    Software patents are a huge problem.
    --
    $x='S24;r)>63/* h@<5+oZ)32"5cz';$me='phroggy'x$];
    $x=~y+ -xz+\0-Tx+;print$_^chop$me for split'',$x;