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$338M Patent Ruling Against Microsoft Overturned

some_guy_88 writes "The $338 million verdict against Microsoft for violating a patent held by Uniloc has now been overturned. 'Ric Richardson ... is the founder of Uniloc, which sued Microsoft in 2003 for violating its patent relating to technology designed to deter software piracy. The company alleged Microsoft earned billions of dollars by using the technology in its Windows XP and Office programs. In April, a Rhode Island jury found Microsoft had violated the patent and told Microsoft to pay the company $388 million, one of the largest patent jury awards in US history. But on Tuesday ... US District Judge William Smith "vacated" the jury's verdict and ruled in favor of Microsoft.' In his ruling, Smith said the jury 'lacked a grasp of the issues before it and reached a finding without a legally sufficient basis (PDF).'"

17 of 238 comments (clear)

  1. Patent by sopssa · · Score: 5, Informative

    "It was never about the money. It was about the ethics of it ... winning a court case is not winning the lottery."

    I bet the $388 million had nothing to do with it.

    This is the actual patent description:

    A registration system allows digital data or software to run in a use mode on a platform if and only if an appropriate licensing procedure has been followed. Preferably, the system detects when part of the platform on which the digital data has been loaded has changed in part or in entirety, as compared with the platform parameters, when the software or digital data to be protected was last booted or run. The system relies on a portion of digital data or code which is integral to the digital data to be protected by the system. This integral portion is termed the code portion and may include an algorithm that generates a registration number unique to an intending licensee of the digital data based on information supplied by the licensee which characterizes the licensee. The algorithm in the code portion is duplicated at a remote location on a platform under the control of the licensor or its agents, and communication between the intending licensee and the licensor or its agent is required so that a matching registration number can be generated at the remote location for subsequent communication to the intending licensee as a permit to licensed operation of the digital data in a use mode. The code portion can be identical for all copies of the digital data. The algorithm provides a registration number which can be "unique" if the details provided by the intending licenses upon which the algorithm relies when executed upon the platform are themselves "unique."

    Sounds like the usual serial key algorithm with an online check, used in many online games too.

    1. Re:Patent by gabebear · · Score: 3, Informative

      Yep, exactly like games have been using http://findarticles.com/p/articles/mi_m0EIN/is_2000_Nov_10/ai_66803777/

      And you quoted the abstract, which is always pretty boring. Read the claims to really figure out what was novel... http://news.google.com/patents/about?id=K7MoAAAAEBAJ

      Suprisingly, this doesn't seem like a patent troll.

    2. Re:Patent by Theaetetus · · Score: 4, Informative

      This is the actual patent description:

      No, it isn't. That's the abstract. The description is 20 pages long.

    3. Re:Patent by commodore64_love · · Score: 5, Informative

      You say "usual" but it's only usual TODAY.
      It was not usual back in the 80s when it was invented.
      Quoting the article:

      "Once users buy the software, they get a registration key that unlocks the full featured version of the software. Uniloc claimed Richardson showed a copy of his software to Microsoft in 1993 but Microsoft did not license it, instead developing its own almost identical version and incorporating it into its products from 1997 or 1998."

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    4. Re:Patent by Theaetetus · · Score: 4, Informative

      The abstract should be enough and should not make every CIS graduate in the room say "Oh, I can do that. Let me show you how". The abstract should give the patent examiner some good reason to read the rest of the patent rather than summarily rejecting it.

      And if the patent examiner does that, they're breaking the law and should be fired. The abstract is a short, 150-word maximum statement that briefly identifies the patent's subject matter. For example, if the patent is titled "Bridge", the abstract lets you figure out if you're dealing with a network bridge, a PCI bridge, a suspension bridge, a wheatstone bridge, a dental bridge, etc. It has no legal weight whatsoever, and is only used to help identify which patents you should read more carefully because they might relate to your search.

    5. Re:Patent by Zordak · · Score: 2, Informative

      You shouldn't have to slog through 20 pages to find the nifty new invention.

      You don't. You just have to read the claims. The abstract has nothing to do with whether the examiner allows or rejects the application. If an examiner rejected one of my applications based on the abstract, I would immediately contact his supervisor and request a real office action from a competent examiner with at least a basic grasp of patent law.

      --

      Today's Sesame Street was brought to you by the number e.
    6. Re:Patent by dmorris68 · · Score: 3, Informative

      But this doesn't describe a simple serial scheme. The serial registration from the 80's was merely a serial/CRC algorithm that verified a valid serial format was entered, but did nothing to check the user's hardware. This patent, as well as Microsoft's activation, uses a hash derived from hardware configuration, making the serial unique to the PC installed on. So if this patent was indeed registered in the 80's (not sure it was, just assuming so from the above comment as I haven't looked it up), then it would seem novel to me unless someone can point out a similar mechanism from that time period. And from other comments it appears that the Richardson approached MS with the idea, which MS declined but went on to develop a virtually identical mechanism. I don't normally favor patent legislation like this, but being as that is SOOO like MS to steal instead of innovate, I'd be inclined to support Richardson on his claim. That said, MS isn't alone here. As mentioned, many other software developers use similar schemes that utilize hardware parameters to lock a registration to the current machine. Not only the CP schemes used by games, but many others as well. MS has the deepest pockets, though, and if the claims that they snubbed Richardson and then copied his idea is true, they deserve to be sued for it. /Devil's Advocate

    7. Re:Patent by commodore64_love · · Score: 2, Informative

      P.S.

      Another reason I'm inclined to believe the Inventor's story is because that's what corporations do. In 1991 a man named J.Michael Straczynski tried to sell his show Babylon 5 to Paramount. They rejected it. Then in 1992 they miraculously created another show that was a virtual clone of Babylon 5 (including the same character names and a shapeshifter). Straczynski chose not to sue, even though he probably could have won. See below.

      Back in the 70s there was a similar case where Harlan Ellison tried to sell his story about a Robot Cop to ABC. They rejected his idea and then turned-around and released a virtual clone one year later. Ellison sued for copyright infringement and won.

      Now I read this story about a man trying to sell his idea in 1993, and it gets rejected, but the corporation went-ahead and used the idea anyway.

      History repeats itself.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    8. Re:Patent by gabebear · · Score: 3, Informative

      The patent was filed in 1993. In 2000 Uniloc was actively courting the gaming industry. http://findarticles.com/p/articles/mi_m0EIN/is_2000_Nov_10/ai_66803777/

      I don't know of any games using hardware locks before 2000. Steam was released in 2003 and seems to use Uniloc for some of it's games http://store.steampowered.com/app/10560/

  2. Re:"cheaper" judge by Strangely+Familiar · · Score: 2, Informative

    There is also an appeal possible. The appeals court already told this judge not to decide the case (by summary judgment), and allow a jury trial. Something tells me that the appeals court is going to be slightly perturbed with the behavior of this judge.

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  3. Re:Mixed feelings about judges overturning a jury by nomadic · · Score: 2, Informative

    The whole concept of jury nullification then becomes endangered should a judge decide the jury's actions were inappropriate. There should have to be a much more difficult process involved to have a judge overturn a jury's decision.

    Jury nullification is more of an issue in criminal cases. And in those cases a judge cannot vacate a jury decision of "not guilty," though they can vacate guilty verdicts (which I think is a good thing.)

  4. Re:Translation by ffreeloader · · Score: 2, Informative

    Microsoft Letting Patents Move To Linux Firms

    move of some patents originally held by Microsoft to the Open Invention Network, where they will join a portfolio whose purpose is to inoculate open source companies against patent trolls.

    Doesn't seem a lot like patent trolling from MS. They've pretty much always just cared about protecting their own ass from patent trolls - and now moving the patents to Open Invention Network, that does it for them and keep the technologies open to everyone else too.

    Say what? MS "allowed" those patents to move to the OIN? What a misstating of the facts.

    MS sold those patents, with instructions as to how they could be used by patent trolls, to a 3rd party known to deal with patent trolls. That 3rd party, without MS's knowledge, then contacted the OIN and told them about the patents. That led to the OIN buying the patents.

    --
    "while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude." de Tocqueville
  5. Re:Mixed feelings about judges overturning a jury by Anonymous Coward · · Score: 1, Informative

    The problem with your worry is that you're confusing two different things.

    Jury Nullification is when a jury finds somebody not guilty despite the law, and can't be over-turned by the judge. A judge can't do much about that, it's only guilty verdicts that they can override.

    In other words, it's just as much a protection as jury nullification.

  6. Re:Mixed feelings by fwarren · · Score: 2, Informative

    It will have a bigger effect than that.

    First is the cost you are referring to, the price of the insurance.

    Second, with the reduced risk of lawsuits, payouts and insurance, Doctors will go into practice in specialties they are now avoiding and in locations where they are avoiding to practice. This increases competition and lowers costs. I.E. The price of specialist is likely to be cheaper if there are 4 doctors in the area practicing, each with a 1 month waiting list than when there is 1 doctor who has a 4 month waiting list.

    Third, health care is overall cheaper when the specter of major lawsuits does not hang over a doctors head. I had some deadlines to meet at work and pulled a lot of overtime. In it I was not taking care of my health. Lots of junk food, little water and no exercise. To make a long story short, I started cramping because I had become constipated. Well my wife picks me up after work on the pretext of going shopping but takes me to the to the doctor. I know I needed a laxative. As it turns out the Doctor knew that as well. But the Doctor could not say it. The Doctor wanted me to run across the street to the lab, wait for 3 hours, get an x-ray, an ultrasound and a CT-scan. They wanted to run about $900 in tests so they could be "sure". It is policy to prevent lawsuits. My Doctor has no discretion in the matter. So what should have been 10 minutes and $50 bucks for the doctor to tell my wife, "Don't worry, have him take a laxative and call me in 2 days if things are not better" would have been turned into a $1000 parade and taken 4 or 5 hours just to tell me, "Everything is ok, go home and take a laxative and call me in 2 days if things are not better".

    By my own estimation on regular doctor visits (not hospital stays) the savings could be from 20% to 90% on a typical visit. I am sure that will amount to an overall savings of more than 10%.

    --
    vi + /etc over regedit any day of the week.
  7. Re:Mixed feelings by Earthquake+Retrofit · · Score: 2, Informative

    In states where caps were put on malpractice awards the cost of insurance has not gone down and only keeps the quack doctors from leaving the state.

    --
    Fifty years of Yippie! 1968-2018
  8. Um, thanks for the free product key? by StikyPad · · Score: 3, Informative

    From TFOpinion: Printed on each jewel box of a retail software product is a 25-character alphanumeric string called a Product Key (e.g., MQ9WT-3D8PY-6VF76-GMHVX-DCXFM).

  9. Re:Supreme Court said this is the correct approach by Theaetetus · · Score: 3, Informative

    Problem with software patents is they have never been specific enough. They try to patent a function of how something works. Mechanical patents don't work that way.

    If you patent a universal joint for a car using roller bearings, and I can patent one using ball bearings and a different joint style.

    Depends on what that "different joint style" is. If I patent a universal joint using steel bearings, you'll fail to get a patent on the same joint style with tungsten carbide bearings, and will likely be found to infringe my patent if you make it that way. However, if your universal joint is wildly different - say, an offset universal joint and mine is axial - then it's different... But that's not what you're seeming to say up there, where the difference is roller bearings vs. ball bearings. If that's the only difference, you aren't going to get a patent on it.

    For many years the Patent courts have upheld business model and software function patents as valid, but the Supreme Court ruled that style invalid last year.

    I think you're confused. The court of appeals for the federal circuit ruled that some business model and software patents were invalid, unless they were tied to a "specific machine" or performed a "transformation", in a case called In Re Bilski. The Supreme Court has yet to rule on Bilski's appeal, but they'll be doing that next spring. Meanwhile, the appeals court has recently affirmed medical diagnosis patents in Prometheus v. Mayo. It's highly unlikely - in fact, I'll go out on a limb and say absolutely not going to happen - that the Supreme Court will overturn all software patents. All they're going to do is [hopefully] provide a clearer test of what the hell a "specific machine" is and what makes it different from a "general purpose computing device".