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Microsoft hit with $1.53bn patents fine

Publish date: 09 May 2007
Issue Number: 1182
Diary: Legalbrief eLaw
Category: General

A US federal judge signed off a $1.53bn jury verdict in favour of Alcatel-Lucent following a highly-publicised digital music patent dispute against Microsoft.

In 2003, Lucent filed 15 patent claims against Gateway and Dell over technology developed by Bell Labs, its research arm. Microsoft added itself to the list of defendants, saying the patents were closely tied to its Windows operating system. AustralianIT reports that during the latest trial, Microsoft disputed that Alcatel-Lucent\'s patents govern its MP3 encoding and decoding tools, and said it licenses the MP3 software used by its Windows Media Player from Fraunhofer-Gesellschaft, a German company. US District Court Judge Rudi Brewster in San Diego ruled that Microsoft\'s Windows Media Player software infringed on patents owned by Lucent Technologies, the US telecommunications equipment maker acquired last year by Alcatel. Microsoft says it will challenge the ruling. Full AustralianIT report

In other patent news, Voice over Internet Protocol (VoIP) phone company Vonage has been refused permission to have its case re-heard, but can introduce a new Supreme Court ruling in its appeal. Out-Law.com notes that Vonage lost a patent infringement case brought against it by mobile phone company Verizon earlier this year. Its phone service was found to be violating three Verizon patents, and it was ordered to pay $58m in damages, pay a 5.5% royalty to Verizon and injuncted not to sign up any new customers. Full Out-Law.com report

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