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Microsoft Ordered To Pay $290M, Stop Selling Word

Cytalk and other readers tipped us to Microsoft's loss in a US appeals court, in a patent case brought by Canadian company i4i. Microsoft must now pay $290M and either stop selling Word (and probably Office) by January 11, or somehow work around the patent by that date. A Seattle PI blog reports that Redmond has a few options left: "In a statement, Microsoft said it was working hard to comply with the injunction. The company also said it is considering further legal options, including possible requests for a new hearing or a writ of certiorari from the US Supreme Court." Update: 12/22 20:47 GMT by KD : Tim Bray has up a blog post explaining why it would be no great loss if Microsoft dropped the "custom XML" feature in dispute.
Update: 12/22 23:04 GMT by KD : Reader adeelarshad82 pointed out a statement released by Microsoft earlier today, which says in part: "We expect to have copies of Microsoft Word 2007 and Office 2007, with this feature removed, available for U.S. sale and distribution by the injunction date. In addition, the beta versions of Microsoft Word 2010 and Microsoft Office 2010, which are available now for downloading, do not contain the technology covered by the injunction."

11 of 272 comments (clear)

  1. $500 instead of $90 for MS Word? by Greg+Hullender · · Score: 5, Interesting
    I thought it odd that they calculated the damages on the assumption that, had Microsoft paid royalties on the patent, they'd have pushed the price of MS Word from $90 to $500 with no loss of sales. It seems to me that if the traffic would support that price, Microsoft would already have been charging it!

    --Greg

  2. Re:Say goodbye for XML by Anonymous Coward · · Score: 5, Informative

    You are wrong. The lawsuit and patent are very narrow and only affect an obscure feature of Microsoft Word that is used by a very small percentage of users. They do not have anything to do with the Office Open XML file format (otherwise this suit wouldn't just be Microsoft Word, it would be all the apps).

  3. Re:So... by natehoy · · Score: 5, Insightful

    On the one hand, it's bad for Microsoft, so slashbot=happy. But it's a Patent win, so slashbot=angry. But it's a win for a small company, so slashbot=happy. But the small company appears to be a patent troll, so slashbot=indignant. But it's band for Microsoft anyway, so slashbot=[error: Stack overflow. Exiting.]

    --
    "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
  4. What happened then? Well in Redmond they say... by Anonymous Coward · · Score: 5, Funny

    that i4i's stock price grew THREE sizes that day.

  5. Re:Say goodbye for XML by Maxo-Texas · · Score: 5, Funny

    I'm personally shocked, because microsoft doesn't have a reputation of working with smaller companies, failing to close a contract, and then releasing their own very similar products.

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  6. Re:So... by PeterBrett · · Score: 5, Insightful

    On the one hand, it's bad for Microsoft, so slashbot=happy. But it's a Patent win, so slashbot=angry. But it's a win for a small company, so slashbot=happy. But the small company appears to be a patent troll, so slashbot=indignant. But it's band for Microsoft anyway, so slashbot=[error: Stack overflow. Exiting.]

    As far as I can tell, i4i is not a patent troll -- that is, they developed the technology, and developed and marketed a product based in said technology. In fact, this almost looks like a poster boy case for the upside of patents -- the little boy is using his patent to stop the big boy ripping it off. It would look better if it wasn't for the glacial pace with which the trial and appeal have proceeded.

  7. i4i ... by Anonymous Coward · · Score: 5, Funny

    ... and Microsoft goes blind

  8. Re:Office "open" XML by al3 · · Score: 5, Funny

    I like to think of it as "open" as in 'you need MS-Word to "open" the file'.

  9. Re:Obvious solution by PeterBrett · · Score: 5, Informative

    Something doesn't add up here. Why is i4i not simply willing to license the rights to use the patent to MS (for an exorbitant fee). Why ask for it to be removed? Seems like a license to print money.

    If you read about the issue in more detail, you'll discover that i4i tried for several years to get MS to pay for a patent license, and MS stalled and delayed and equivocated about it. The lawsuit was a last resort, and AFAICT the damages are so high as a punitive measure. In theory, MS shouldn't be able to get away with ripping people off just because they're the big kid in town.

    But yes, I'm sure i4i could have done things in a better way -- they're not completely free from blame for this mess.

  10. RTFP by Ukab+the+Great · · Score: 5, Informative

    The patent in question.. Decide for yourselves.

  11. Re:Say goodbye for XML by abigor · · Score: 5, Informative

    The case involves the algorithms MS uses to open and display what they call "custom XML". It does not involve a patent on XML itself, and only affects Office 2003 and 2007, not 2010. Stop being so hysterical.