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$358 Million Patent Judgment Against Microsoft Overturned

eldavojohn writes "Last year, Microsoft was ordered to pay Alcatel-Lucent hundreds of millions of dollars for patent infringement. Well, that award has just been overturned by the United States Court of Appeals for the Federal Circuit, saving Microsoft a considerable sum. But Microsoft isn't in the clear yet; the appellate court said that they did infringe on Alcatel-Lucent patents, but that those infringements did not warrant $358 million in damages. The case needs to be retried."

25 of 76 comments (clear)

  1. Cooperation. by Forty+Two+Tenfold · · Score: 5, Insightful

    The more stuff I read about patent litigation the less I understand why the corporations don't come to the conclusion that it doesn't do them any good. Patent law reformed reasonably, everyone would benefit (and, presumably, profit).

    --
    Upward mobility is a slippery slope - the higher you climb the more you show your ass.
    1. Re:Cooperation. by Anonymous Coward · · Score: 5, Insightful

      I completely agree with you. However this will never happen (by way other than the people voting patents out) because all companies need to build the biggest patent porfolio they can just to intimidate other large companies into not suing them. Patents have become weapons of intellectual and economic destruction. IBM has over 50,000 patents, Microsoft has 30,000+ patents. These companies have contract saying they wont sue each other because they could get nothing done. However, they sue the little guys, and the little guys sue them. However the big companies with a load of patents remain in power forever, destroying legitimate competition in the market place. Patent are an invention of the state and are maintained by the state. Patents and copyrights are INEXISTENT in a true free market.

    2. Re:Cooperation. by Anonymous Coward · · Score: 2, Insightful

      It profits the lawyers I think. Since there are a lot of lawyers around, we need a lot of insane laws to keep them fed.

    3. Re:Cooperation. by KibibyteBrain · · Score: 3, Insightful

      It's all a matter of fear. Companies know that the current system sucks, but they also know it works for them. There is fear that any change to the system might change competitive advantages or have unforeseen consequences. Its amazing that leading research firms are at their heart very conservative.

    4. Re:Cooperation. by Ihmhi · · Score: 3, Insightful

      All these years, I wondered what the "???" in those lists was for. Now I know!

    5. Re:Cooperation. by Runaway1956 · · Score: 2, Insightful

      Despite being posted by AC - that is the most insightful post that is likely to be made on the subject. Lawyers don't WANT the laws to make sense. Who makes laws? Many lawmakers are lawyers. Who tries law? Lawyers, obviously. Who judges law? Judges are generally lawyers. (I'm aware that in some places, judges are elected, and are not necessarily members of the bar.)

      Try reading the various legislations that come out of Congress. I struggled through the health care reform that was offered before Congress broke. I do mean, "struggled". The common man isn't meant to understand law.

      Beautify America. Shoot a lawyer.

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    6. Re:Cooperation. by tinkerghost · · Score: 2, Informative

      Actually, the last report I heard was that patents - outside of the drug industry - are a multi-billion dollar net loss for everyone except lawyers. Yes, that is correct - several billion dollars a year more is paid in patent litigation than is earned through rewards, licensing, and settlements.

      Thus patent law will never be reformed properly because it would kill a multi-billion dollar industry populated entirely by lawyers.

    7. Re:Cooperation. by shirotakaaki · · Score: 2, Insightful

      Your point about the fact that they make agreements with each other not to sue should be a glaring example of why patent reform is needed. Corporations find them so bad they need to sign peace treaties with each other just to do business.

    8. Re:Cooperation. by bill_mcgonigle · · Score: 2, Insightful

      It works for the large companies because it prevents small companies from becoming competitive. And, in technology especially, large companies are always disrupted by small companies. So, they have an expensive mechanism for preventing disruption (to a large extent) but it's cheaper to play the government-granted game than to risk being disrupted.

      It's only the economy and society that suffers - large corporations and the government make out well.

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
  2. Too bad they didn't share a few MP3's by RenHoek · · Score: 5, Insightful

    It's 'funny' how a consumer can rack up a fine of a couple of million for sharing a few MP3's, to "send out a clear signal to copyright infringers". But for a repeat offender like Microsoft a fine of a few million (which is peanuts really) is somehow too high. It's great how the American justice system has its priorities straight like that. (Not only the American justice system btw, huzzah for lobbyists).

    1. Re:Too bad they didn't share a few MP3's by Z_A_Commando · · Score: 4, Insightful

      You're witnessing the difference between patent infringement and copyright infringement. Patents deal with a concept, idea, etc. Copyrights deal with actual products, be they physical (as in a car, processor, or pen) or intellectual (as in a movie, sound recording, etc). You would probably call the latter "imaginary", but regardless, at the current state of law, they are still considered copyrightable property.

      Patents don't automatically translate into profits through sale of goods or services. Patents make up products, but there are many patents that don't ever make it to market in a product. Copyrights, on the other hand, deal with an actual product. Copyrights have intrinsic value because the product in question is available for sale or will be available for sale. Copyrights provide an exclusive right to sell, distribute, and produce a product, not an idea. Therefore, infringement of a copyright is much more damaging to the copyright holder than infringement of a patent, at least in theory. Thus the "harsher" penalties.

      Keep patent reform separate from copyright reform because they are different things.

  3. The case needs to be retried by JohnHegarty · · Score: 5, Insightful

    The case needs to be retried , so a great win for the lawyers on both sides.

  4. Mod me flamebait if you like... by Anne+Honime · · Score: 5, Interesting

    ... I've got karma to lose, but when the EU take a couple of months to review the buyout of Sun by Oracle to assess the impact on competition, it's evil protectionism, but when a US court of appeal overturn the damages awarded by a lower court to a rightful holder of a patent, it's just sheer justice done to a strategic company. It absolutely doesn't matter in the latter case that the victim is EU based and the offender is an already convicted US based monopolist with a track record of shoddy behaviours as long as the road 66.

    1. Re:Mod me flamebait if you like... by Gerafix · · Score: 2, Insightful

      I know I'm going to get modded down for this but... Do you think Americans are interested in reason, logic, or evidence... at all? Take a look at the popularity of Fox News and Glen Beck and the rest of the looney tunes Republicans. The only thing America is interested in is profit and fear mongering.

    2. Re:Mod me flamebait if you like... by kamapuaa · · Score: 4, Funny

      .. I've got karma to lose

      Wow, you go on Slashdot and make a post that's both anti-US and anti-Microsoft? You really are taking a huge risk with your slashdot karma there!

      --
      Slashdot: providing anti-social weirdos a soapbox, since 1997.
    3. Re:Mod me flamebait if you like... by jamstar7 · · Score: 2, Funny

      The only thing America is interested in is profit and fear mongering.

      What more do you need?

      Hookers and blow, of course. And blackjack.

      On second thought, let's forget about the blackjack...

      --
      Understanding the scope of the problem is the first step on the path to true panic.
  5. hold on a minute there buddy :) by hebertrich · · Score: 2, Funny

    Are you actually trying to make sense ?
    Dang it dude .. you got to stop that shit , and i mean now :)

    1. Re:hold on a minute there buddy :) by Forty+Two+Tenfold · · Score: 3, Funny

      Sorry, I was taking life seriously... [lights up the bong]

      --
      Upward mobility is a slippery slope - the higher you climb the more you show your ass.
  6. Reducing awards in cases like these is a good thin by langelgjm · · Score: 2, Insightful

    Reducing the award in a case like this makes sense. Part of the problem with software patents (actually patents in general whenever you have complex devices) is that it's easy to step into the territory of several of them.

    The "free-market" answer to this case would be that Microsoft should have licensed the patent from Alcatel. Assuming that Microsoft could have even figured out its product would be found infringing (it is not necessarily obvious in patent cases), Outlook probably involves hundreds of potentially patented features. If Microsoft were really to try and license each one, their licensing fees would quickly outpace any profit they could ever hope to make from Outlook. Everyone is going to say "Oh, just give me 8% of your profits, it's not that much", but when you have a hundred patents to license and everyone wants 8%, guess what, that doesn't work.

    Patent holders often don't have any idea how much their patent is really worth, but since they have the power to simply deny people the use of it at any price, they tend to overestimate its value. Then, if a company like MS decides to ignore the patent (either out of ignorance, confusion, or strategy), they risk a whopping award.

    No, reducing awards in cases like these is a good step. We might not like the fact that it happened to big bad Microsoft, but if it sets a precedent for how the CAFC looks at these types of awards in the case of complex products, it's a good thing.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
  7. I've got a better idea : by Anne+Honime · · Score: 2, Insightful

    Just get rid of all immaterial patents altogether, stick back to copyright for software / business methods, and only use patents in the physical world. Patents were never conceived to reward mere ideas, but factual industrial process ; patents are extremely useful to keep track of some non-obvious industrial techniques that would otherwise remain trade secrets, and be forgotten after a while. Their aim is to accrue global human knowledge and benefit mankind. The balance side of the deal is a time-limited exclusivity granted to the inventor. Nowdays, patents have been ripped open and gutted. They work backward. Most process described in the software realm are so fuzzy they don't describe any real secret 'sauce' necessary to make an actual software out of them, they reward ideas, and they're basically granted forever. The best way for the intellectual patent system to put itself out of its misery is to produce so devastating effects that the biggest patents holders (like Microsoft) suffer so much they beg mercy themselves.

  8. No they wouldn't... by Junta · · Score: 4, Insightful

    At least microsoft on the whole wouldn't...

    Take the recent MS Word injunction. Now, we can argue about the validity of the patent in question there, but regardless of that point, everyone *knew* that MS would not have to cease and desist distribution of Word, not because the patent was bs, but because MS is just too resourceful and end the end, perceived as 'too big to fail'.

    On the flipside, MS can crush a threatening smaller company even if the patent is flimsier. The smaller company will not have the benefit of as many legal resources to start with, and also would not have people thinking "I can't be the one to screw the largest software company in the US".

    As it stands in the software industry, a vast majority of the financial resources are controlled by companies that can abuse their disproportionate share to game the patent system enough to win more than lose and feel confident they will always win more than lose.

    --
    XML is like violence. If it doesn't solve the problem, use more.
  9. lawyers +1, everyone else - a lot. again. by Swaziboy · · Score: 2, Insightful

    and yet again, it appears the only group to benefit are the f!cking lawyers. How surprising...

  10. Re:Yes, it is clear. by CarpetShark · · Score: 2, Funny

    It wasn't 358M, rather it was 748M.
    Epic win for M$.

    640M ought to be enough for anybody.

  11. Re:It's too bad by earlymon · · Score: 2, Funny

    Every time the bastards get slapped with an as ginormous as ridiculous patent infringement judgement as this, I hope they see the light and start opposing software patents.
    Hey, a boy can dream.

    My dream is that the ginormous penalties might somehow result in their ethical behavior.

    --
    Pathological kinda promises Path + Logical - but instead, you get stuck with pathetic.
  12. Car analogy: by GameboyRMH · · Score: 2, Insightful

    It's like having a $10K fine + impounded car + illegal stunt driving charge + 1-week license suspension for speeding, plus getting your car seized by the government and crushed if it had any modifications, but just a short license suspension + small fine for driving around shitfaced drunk.

    Wait a minute...DAMN YOU ONTARIO!!!

    --
    "When information is power, privacy is freedom" - Jah-Wren Ryel