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Microsoft Trial Misconduct Cost $40 Million

SpuriousLogic writes "The judge who banned Microsoft from selling its Word document program in the US due to a patent violation tacked an additional $40 million onto a jury's $200 million verdict because the software maker's lawyers engaged in trial misconduct, court records reveal. In a written ruling, Judge Leonard Davis, of US District Court for Eastern Texas, chastised Microsoft's attorneys for repeatedly misrepresenting the law in presentations to jurors.'Throughout the course of trial Microsoft's trial counsel persisted in arguing that it was somehow improper for a non-practicing patent owner to sue for money damages,' Davis wrote. The judge cited a particular incident in which a Microsoft lawyer compared plaintiff i4i, Inc. to banks that sought bailout money from the federal government under the Troubled Asset Relief Program. 'He further persisted in improperly trying to equate i4i's infringement case with the current national banking crisis implying that i4i was a banker seeking a "bailout,"' Davis said."

16 of 231 comments (clear)

  1. Damnit! I'm torn! by erroneus · · Score: 4, Insightful

    On one hand, it's fun to see Microsoft getting punished, on the other, I happen to agree with Microsoft's argument with regard to patent trolls.

    I think Microsoft might have made out better this way anyway. Arguing to invalidate the patent could have hurt them and their practice of patent filing and arguing Bilski could have really blown the lid off of things. In short, they more or less had to defend "software patents" while at the same time finding a legal argument against the plaintiff.

    1. Re:Damnit! I'm torn! by MightyMartian · · Score: 3, Insightful

      They should be seeking the patent be thrown out because using markup languages to store documents (including formating, notes, whatever, etc.) has been around for something like forty years.

      --
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    2. Re:Damnit! I'm torn! by Zordak · · Score: 5, Insightful

      It's willful infringement, which means they were fully aware of the patent and decided to do it anyway. Before we just dismiss i4i as trolls, maybe we could consider the possibility that they did something innovative and Microsoft flagrantly ripped it off, giving them the finger and saying, "If you don't like it, we'll see you in court." Maybe you don't like software patents, but they are the law. i4i layed down a lot of money to get a patent issued because the current state of the law made that patent valuable. Seriously, everybody on /. seems to assume that every single patent infringement lawsuit is a "patent troll." But patent law is a lot more complicated than that. And I imagine that about nine out of ten people here would have the exact same reaction if Microsoft ripped off their product: let's sue.

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    3. Re:Damnit! I'm torn! by Zordak · · Score: 3, Insightful

      Ok. The patent is on XML authoring. How is storing any kind of data in XML non-obvious?

      Actually, U.S. Patent 5,787,449 is a patent on "a computer system for the manipulation of the architecture and content of a document having a plurality of metacodes and content by producing a first map of metacodes and their addresses of use in association with mapped content; said system comprising: metacode map distinct storage means; means for providing a menu of metacodes to said metacode storage means; and means for compiling said metacodes of the menu by locating, detecting and addressing the metacodes in the document to constitute the map and storing the map in the metacode storage means; and means for resolving the content and the metacode map into the document." It is also a patent on "A method for producing a first map of metacodes and their addresses of use in association with mapped content and stored in distinct map storage means, the method comprising: providing the mapped content to mapped content storage means; providing a menu of metacodes; and compiling a map of the metacodes in the distinct storage means, by locating, detecting and addressing the metacodes; and providing the document as the content of the document and the metacode map of the document." And finally, it is a patent on "A method for producing from a document made up of metacodes and content, a map of metacodes and their addresses of use in association with mapped content of the document and stored in distinct map storage means, the method comprising: (a) reading the content of the document until a metacode is found; (b) copying the content and storing the copied content in a mapped content storage; (c) noting in the map the found metacode and its position in the content; (d) repeating the processing of (a)-(c) until the entire document has been processed; and then (e) providing the document as the content of the document separately from the metacode map of the document."

      Apparently, I cannot say this enough times on Slashdot. A patent's scope is determined by its claims, not by your vague, fleeting impression of the title, or a fleeting summary by some tech editor.

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      Today's Sesame Street was brought to you by the number e.
    4. Re:Damnit! I'm torn! by Svartalf · · Score: 3, Insightful

      Without looking at the patent, you haven't a clue what the patent is. You can't just look at the title and think you understand the patent. The scope of a patent is entirely defined by its claims. Until you have spent hours picking apart the claims, the specification, and the file wrapper, you don't know how broad the claims are or whether you could implement them, or what "basic idea" they cover.

      It bears repeating so that people will "get it". I'm not a lawyer, but I am an inventor and I've filed Patents and been an expert witness on some infringement litigation in the recent past. While I'm not an expert, I've got some experience in dealing with stuff of this nature.

      Folks, the gent's telling you the God's truth on this. Each claim has to be evaluated separately and combined. The "basic idea" may/may not be sufficient to invalidate the patent as it's written, depending on the nature of what they're claiming. Sometimes it will. Sometimes it won't.

      If you've never looked at the body of a Patent, you will not be able to even remotely make a judgement call on the validity thereof.

      And if you are able to implement them after you've picked through the patent, that's pretty good evidence that the claims were properly enabled. In fact, in some recent litigation, one of our arguments was that the patent was invalid because after working all the way through the patent, we couldn't implement the invention.

      Heh... I'm guessing that many if not a small majority of the software patents out there would fail on those grounds.

      IANYourL. This post is my rambling, not legal advice. Do not rely on this post for any reason.

      Cool sig you got there. :-D

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    5. Re:Damnit! I'm torn! by s73v3r · · Score: 3, Insightful

      To quote John Carmack: "The idea that I can be presented with a problem, set out to logically solve it with the tools at hand, and wind up with a program that could not be legally used because someone else followed the same logical steps some years ago and filed for a patent on it is horrifying."

    6. Re:Damnit! I'm torn! by huckamania · · Score: 3, Insightful

      "Until you have spent hours picking apart the claims, the specification, and the file wrapper, you don't know how broad the claims are or whether you could implement them, or what "basic idea" they cover."

      I can implement it, except now I can be sued for implementing it. I'm a good programmer and generally a nice guy, am I supposed to pour over every patent to figure out what I can or cannot write? It's madness. I expect the lawyers to be for this, because it makes them money. But why anyone else would is beyond me or maybe just below me.

  2. Dumb law, dumber jury and dumbest lawyers by 140Mandak262Jamuna · · Score: 4, Insightful

    Instead of trying to educate the jury that the whole point of "Extensible" markup language is to extend and customize the files the lawyers were pulling stunts. In the tragedy of errors, I cant decide who to root for.

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    1. Re:Dumb law, dumber jury and dumbest lawyers by __aagmrb7289 · · Score: 4, Insightful

      I have a suggestion - try rooting for the side that is RIGHT. Instead of who you "like better" or "hate a little less." Trust me - the world would be a better place if we could all pull that off.

  3. Why are American Judges demanding so much money? by Anonymous Coward · · Score: 5, Insightful

    $2 million for mp3s, $40 million for a bad argument.

    Do these judges send a $10 million bill to toilet paper companies when they have to wipe their backside?

  4. Re:Fol de Rol by Opportunist · · Score: 3, Insightful

    How should I picture this? MS stopped paying, so instead of trolling for them we're trolling against them now?

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  5. Re:Fol de Rol by Pieroxy · · Score: 4, Insightful

    the law is on their side

    Extending the "Extensible markup language" seems like a no-brainer. It is in the name of XML!!! And I thought patents had to be non obvious !

    Not really sure on which side the law is on that one. That said, explaining this to a judge might prove to be a complex situation.

  6. Penalize client? by Dan+East · · Score: 3, Insightful

    I don't know a lot about the intricacies of the legal system, but why is the client penalized for the behavior or mistakes of the attorney? Does the client dictate or approve every word that comes out of the attorneys mouth in court? If the attorney used misleading wording then shouldn't the attorney be censured or fined and not have that penalty included in the actual judgment?

    Maybe this isn't applicable at all, but what if an attorney represented someone guilty of committing a crime, and the judge tacked a few extra years onto the sentence because he didn't like the attorney or what they said?

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    Better known as 318230.
  7. Re:Why are American Judges demanding so much money by gnasher719 · · Score: 4, Insightful

    I don't have points to mod you up, but the judges do need to have their heads and their asses examined.

    In this case, I completely disagree.

    Microsoft made the argument that a company having a patent but not producing anything shouldn't be able to ask for monetary damages. That is wrong. I can make an invention even though I know clearly that I don't have the money, talent and intention to turn this into a product that can be sold at profit. If I am better at inventing than at marketing it would be ideal to invent things and sell those inventions to others who are better at marketing. The fact that Microsoft uses the invention proves that it is worth money and that damages should be paid.

    This is of course completely independent of the question whether the patent should be invalidated, or whether Microsoft is infringing on the patent. It is quite possible that a court outside Texas would have judged in favor of Microsoft, and stupid software patents should be (but are not) invalid, whether they are owned by Microsoft or used to extract money from Microsoft. But that wasn't what the judge complained about: He complained that Microsoft repeatedly told the jury to not award damages for reasons that were not in agreement with the law.

    And since they tried to influence a court decision that was about $200 million, making them pay 20 percent for trying to convince the jury to do something that is clearly wrong seems fine.

  8. Whoever wins... by Anonymous Coward · · Score: 5, Insightful

    We lose.

  9. Re:First post? by Sj0 · · Score: 4, Insightful

    It's not the job of judges to determine the value of a law, only to interpret them.

    Patent law doesn't say you have to be using the patented device to sue. It never even hints at it. The judge has no authority to make it say that. Microsoft was fined for pretending the law does say or hint at that.

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    It's been a long time.