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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).'"

27 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 commodore64_love · · Score: 3, Insightful

      I grew-up in the 70s and played many many games throughout the 80s, and I'm not aware of any program that used this method. They all used a mechanical dongle, or other physical method, to verify a program's validity.

      Can you please provide us a list of the games/programs, pre-patent, that allowed for *online* registration using a key? (or else defaulted to a trialware mode)

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    5. 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.

    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 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. Translation by whisper_jeff · · Score: 4, Insightful

    Translation = it's cheaper to bribe one judge than 12 jurors.

    I joke! I joke!

    kinda...

    1. Re:Translation by geminidomino · · Score: 3, Insightful

      Except Microsoft DIDN'T win. According to the jury, they lost. Then the judge said "The jury is made of dumbasses. It didn't count."

      Note how they never do that when the loser isn't big and rich...

    2. Re:Translation by jedidiah · · Score: 4, Insightful

      While that is certainly likely, the jury is there for a reason. They
      aren't there just to be ingored later. There is supposed to be a
      process in place here and the judge seems to be just ignoring it in
      favor of his own personal biases.

      This sort of haphazard outcome should bother anyone who ever held a
      patent application or is likely to be sued by someone that does.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    3. Re:Translation by commodore64_love · · Score: 4, Interesting

      >>>Surely there we're games/shareware apps that did that before this patent too.

      Please name them. I'm not aware of any that predate 1993 (when the inventor originally tried to sell his idea to MS). Most of the software of that time used the following methods to enable trialware: Let you play a level and then type in a "code" from a book or wheel. -or- Allow software to be used but disabled if you did not have the mechanical dongle on the rear of the machine.

      This inventor's idea was different in that it allowed online registration via phoneline dialup or internet connection.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  3. Jury problems by gr8_phk · · Score: 3, Insightful

    He said the jury "lacked a grasp of the issues". But the traditional jury selection process rejects people with critical thinking skills - engineers in particular. So why didn't he say to start over with a qualified jury, rather than change the decision to his own? This suggests that ALL trials with highly technical issues will be decided by a judge alone - and we know they aren't always up on such things either.

    1. Re:Jury problems by nomadic · · Score: 3, Insightful

      But the traditional jury selection process rejects people with critical thinking skills - engineers in particular.

      Well, first of all when I think engineers I tend not to think "critical thinking skills"; I mean, I think "quantitative skills" and "analytical skills", but considering how many of the leading creationists are engineers, how many subscribe zealously to weird political views, and how many are so prone to adopt conspiracy theories (zomg the judge was bribed), "critical thinking skills" doesn't come to mind.

      Also do you have any data to back up the idea that engineers are excluded more than other professions?

  4. Re:"cheaper" judge by Arimus · · Score: 5, Insightful

    For balance then we need a system where by we, the public, can vacate a judge on the same grounds...

    The idiots who hand out prison sentances for missing a council tax payment but give muggers a slap on the wrist need vacating from their benches (or ideally the gene pool).

    (And yes, I know this is a US case but jury's and judges do share certain common traits with the UK ... phrases like two short planks act as the link)

    --
    --- Users are like bacteria -> Each one causing a thousand tiny crises until the host finally gives up and dies.
  5. Mixed feelings by KingSkippus · · Score: 5, Insightful

    I always have mixed feelings when I hear that a judge vacated a verdict.

    On the one hand, a lot of people are idiots, and I imagine that it's not that unusual to get seven idiots on a given jury at the same time. I kind of like the thought that there's a "fail safe" that has veto power over a bad jury.

    On the other, I don't like the thought that one person has absolute power over the process like that. One guy (or gal) can basically overrule everything a jury deliberates on. I've known judges that are idiots, too, and when I see something like this, I can't help but wonder why we even bother to have the trial.

    In the end, I suppose I lean more towards taking the power to vacate verdicts or awards from judges. After all, that's what the appeals process is there for, to be that fail safe, and to be honest, I think the odds are more likely that you'd get one idiot judge than seven idiot jurors if I'm the one in the courtroom. Plus, jurors are more likely to account for the human element in such cases than a judge who looks at everything in terms of the black-and-white letter of the law; they're more likely to come up with a right (i.e. moral and ethical) decision, even if it isn't the Right (i.e. legally correct) decision.

    And it's not just because it's Microsoft. I'd feel the same way if this happened in the Jamie Thomas case and the judge had smacked down the RIAA. In theory, it shouldn't make a difference, but in reality, I always try to imagine how I'd feel if the tables were turned and the same thing happened.

  6. Problem is this only works here by Anonymous Coward · · Score: 3, Insightful

    where the loser is wealthy.

    How many cases of "computer trespass" have been decided on ridiculous reasoning from the jury and allowed without murmur from the judges WHEN THE DEFENDANT WASN'T RICH?

    Privilege used to mean "private law".

    Rule of law was supposed to remove that and we would all be equal under it.

    But judges vacating juries and judges disallowing nullification and judges disallowing people who know what they are talking about ensures that privilege lives on.

  7. Patent is obvious, and rubbish by AbbeyRoad · · Score: 3, Interesting

    From the judgment "...fair to describe Microsoftâ(TM)s evidence as more or less
    conclusory on this point." I.e. that the patent was an obvious modification to
    prior work.

    I am glad about this. It shows that the patent system is not so broke as some think.
    This patent basically is merely the means by which one can type in a license key
    after downloading some free-trial software. Much free-trial software has some kind
    of typing-in-of-a-license-key, and if Microsoft lost it would mean no one could do
    this in their own products without fear of a law suite - a ridiculous situation.

    This guy was just gold-digging. Well done to the judge.

  8. Mixed feelings about judges overturning a jury by erroneus · · Score: 4, Interesting

    When judges essentially nullify a jury decision, I find it worrisome as it appears to circumvent the system established by the constitution as I understand it. 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.

    My feelings are mixed because it is indeed the case that juries are indeed quite stupid people. There was a new story recently describing a situation that has been ongoing for more than 3 years where a young female became pregnant and never informed the father until just prior to giving birth. (She was probably compelled or otherwise pressured to do so due to legal requirements.) The baby was planned to be offered for adoption by one of the girl's relatives. They asked him to sign the documents and he refused and stated he wanted to keep the baby. The adoption agency proceeded with the adoption process anyway which was a mistake for which they paid a rather large settlement to the father in this case. But the father continues his struggle against this illegal adoption. It was at one point decided by a jury that the child would be better off with the adoptive parents and that the needs of the child outweighed the rights of the father.

    This is a seriously questionable decision and one that, off hand, I tend to disagree with. A judge also disagreed with the jury and overturned some of the jury's decisions opening the door for the father of the child to claim him and bring him back home. The law, as it turns out, favors the rights of the natural parents and also favors the law and recognized that procedure and law was broken during the adoption process resulting in extreme injustice. The judge also ruled that there was no evidence that this single father was not capable of raising and supporting this child and that the jury's decision was wrong.

    I agree with the judge's actions in this case as it seems to match with my own understanding of justice in this case. However, the ability of a judge to overturn a decision by jury still bothers me.

    As to the case with Microsoft? I can't say as I agree one way or the other except on one point -- there should be no software patents. And while this is not a strike against software patents directly, it serves as another example of how they are used and abused and why they are simply bad.

  9. Re:"cheaper" judge by commodore64_love · · Score: 4, Interesting

    >>>For balance then we need a system where by we, the public, can vacate a judge on the same grounds...

    We have one. (cocks gun). Or if you want something less messy, you could hire a private investigator to hack the judge's accounts, find the evidence of bribes from Microsoft, and then have the judge removed and the original verdict restored. There was a similar instance in Pennsylvania, resulting in the freedom of many wrongfully-convicted citizens and a judge who is heading towards jail on bribery/corruption charges.

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  10. Excellent news! by Just+Some+Guy · · Score: 3, Insightful

    I'm no Microsoft fan, but I rather watch them beat a stupid patent than see anyone stuck with such a stupid verdict. At least this establishes recent precedent for judges overturning lunacy.

    Yeah, I know we all hoped it would be the straw that broke the camel's back and Microsoft would say, "wow, this is idiocy and we need to see the light!" This wouldn't have been that straw. This straw would've left them saying, "wow, I'm glad we can afford it! Too bad for our poorer competitors who can't!"

    --
    Dewey, what part of this looks like authorities should be involved?
  11. At least he's consistent by nedlohs · · Score: 3, Interesting

    The judge finds for Microsoft and then on appeal the higher court says "ah no this needed to go to a jury you idiot".

    So it goes to a jury, and the same judge then rules the opposite of the jury verdict and finds for Microsoft again.

    Surely that's going to make for an interesting appeal...

  12. Jury system doesn't work anymore by Grashnak · · Score: 5, Interesting

    The jury system was great back when the most complicated thing they had to make judgements on was whether or not a stolen horse had an altered brand - and they all worked with horses.

    Today we are asking 12 average joes to make life and death decisions about evidence that even highly trained people would find difficult to follow. The Enron finances, DNA evidence, whether or not some highly technical piece of code is "obvious". This is why juries ignore mountains of technical evidence in favour of bullshit like "If the glove don't fit, you must acquit".

    I don't know what the solution is, but I do know I don't want Tom, Dick and Harry sitting in judgement on my patent lawsuit.

    --
    Life needs more saving throws.
    1. Re:Jury system doesn't work anymore by TheRaven64 · · Score: 4, Insightful

      Possibly the solution is to have 'a jury of your peers,' you know, the sort of people who will be familiar with the issues at hand. Of course, if you want competent people to actually do jury service rather than trying hard to get out of it, you need to compensate them accordingly.

      --
      I am TheRaven on Soylent News
  13. How to get out of Jury Duty by m0s3m8n · · Score: 3, Funny

    Kinda on topic ... I was once called to sit on a Jury in a civil case. When asked by the judge if I had any objections to being a juror I honestly told him "I believe there are too many lawsuits in this country." It was like I had the plague. They had me out of there within 30 seconds. What was funny is as I was being lead out of the room the defendants counsel objected to my dismissal. Of course the judge did not agree.

    --
    Conservative, mod down for violating /. political norms.
  14. 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).

  15. 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".