<Bz26>Microsoft fined $1.52b for infringing patents
WASHINGTON (Bloomberg) — Microsoft Corp. should pay Alcatel-Lucent $1.52 billion, a federal jury said, deciding the world’s biggest software maker used digital music technology without permission and handing down the largest patent ruling in history.The San Diego jury said yesterday that Microsoft infringed two Alcatel-Lucent patents with its Windows Media Player, including the version in the new Vista operating system. Microsoft pledged to challenge the verdict.
The decision allows Alcatel-Lucent, the world’s biggest maker of communications equipment, to seek an order barring Microsoft from using the patented technology. Alactel-Lucent’s victory also may clear the way for legal actions against hundreds of companies that rely on MP3, the standard for playing music and sound files on a computer, mobile phone or digital-music player.
“Obviously we’re very happy with the verdict,” said Barbara Landmann, president of intellectual property and standards for Paris-based Alcatel-Lucent. “We fight hard to protect our intellectual property and are glad the jury agreed with our argument.”
Microsoft, based in Redmond, Washington, said it licenses the technology from a German researcher, Fraunhofer Institute for Integrated Circuits IIS. Fraunhofer helped develop MP3 audio-compression technology with Bell Labs, once part of Lucent Technologies Inc., which Alcatel SA acquired last year.
“The damages award seems particularly outrageous when you consider we paid Fraunhofer only $16 million to license this technology,” Microsoft deputy general counsel Tom Burt said in an e-mailed statement.
