Microsoft Loses $290 Million Patent Appeal, Fails to Shake Up U.S. Patent System

Microsoft’s protracted patent battle with 30-man strong Canadian company i4i is finally over. The U.S. Supreme Court has unanimously turned down Microsoft’s appeal against a lower-court ruling ordering it to pay $290 million in damages for infringing one of i4i’s XML-related patents with certain versions of its popular word processing software.
One way or the other, the outcome was always going to be historical as a win for Microsoft would have completely changed the US patent system. This is because Microsoft had argued for the lowering of the current “clear and convincing” standard of proof for patent invalidity arguments. Instead, the software titan wanted the court to adopt a lower “preponderance of the evidence” standard of proof in such matters.
Microsoft had the backing of such tech luminaries as Apple, Google and Yahoo in this case, while the U.S. government was i4i’s most notable supporter.
"Microsoft tried to gut the value of patents by introducing a lower standard for invalidating patents," i4i’s chairman Loudon Owen said in a statement. "This is one of the most significant business cases the court has decided in decades.”
"While the outcome is not what we had hoped for, we will continue to advocate for changes to the law that will prevent abuse of the patent system and protect inventors who hold patents representing true innovation,” reads a statement issued by Microsoft.
Comments
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Danthrax66
June 10, 2011 at 11:04am
This is ridiculous fucking patent trolls are killing the tech industry.
Anyway in response Microsoft should revoke all Canadian licenses of Office that would be some funny shit.
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cj100570
June 10, 2011 at 4:21pm
Microsoft all but admitted that they knowingly stole intellectual property belonging to i4i. They got what they had coming to them; their proverbial dicks slapped into the dirt. Large companies have to learn that they can't just appropriate the technology of smaller companies and think that they can get away with it.
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TheZomb
June 10, 2011 at 7:33pm
Its much more likely that they didn't and i4i waited 2 years until they could sue for millions to tell them. Thats usually how these patent cases work. The plaintiff realizes someone is using their intellectual property and waits until they generate value with it and then comes the lawsuit. Sadly this activity isn't illegal. The patent system is designed to promote creativity and innovation, but it is seriously stifling the tech industry. Everytime a company wants to create a product it has to vetted incessantly probably still contains some random persons IP. Since the patent system in the US has allowed the patenting of the simplest most inane procedures a computer can do, companies are extremely apprehensive about creating any product that is one pixel or half a procedure close to someones years old IP they no longer use.
How is allowing a company to sit on intellectual property and not use it, "Fostering innovation" as per the design of the patent system. The current patent system allows tiny coporations to do nothing but gather patents, patent things they never use, or patent the simplest procedure required by so many applications and stifle the entire industry with law suits. Its rare when the big guys are in the right, but if companies like i4i are allowed to continue this activity it will extremely hurt the interests of all members of the tech community even the little developers.
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