AfterDawn: News

Microsoft ordered to pay $1.52bn over MP3 patent infringements

In a case that may have set a bad precedent, Microsoft Corp. has been ordered to pay French phone equipment firm Alcatel-Lucent a sum of $1.52 billion for allegedly infringing two audio patents. Alcatel originally sued Microsoft for breaching two patents covering standards used for converting audio into MP3 files.

Microsoft was shocked by the federal jury's decision, saying it was "unsupported by the law or facts". Alcatel was very pleased with the San Diego court's decision. "We made strong arguments supporting our view " said an Alcatel-Lucent spokeswoman. However, Microsoft has already licensed the MP3 technology in a $16 million deal with Fraunhofer.



"We are concerned that this decision opens the door for Alcatel-Lucent to pursue action against hundreds of other companies who purchased the rights to use MP3 technology from Fraunhofer, the industry-recognized rightful licensor," said Microsoft lawyer Tom Burt.

Source:
BBC News

Written by: James Delahunty @ 23 Feb 2007 14:29

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• 10 comments

• Colbybear

  $1.52 Billion! Even the all mighty mircosoft would feel the difference in their wallet's weight after that blow.

  23.2.2007 15:29 #1

• OzMick

  It'll get overturned in appeals court, the courts aren't going to set a precedent like this.
  
  Maybe they should consider giving thought to open codecs like OGG, would solve a lot of problems...

  23.2.2007 21:39 #2

• DVDBack23

  Originally posted by OzMick:It'll get overturned in appeals court, the courts aren't going to set a precedent like this.
  
  Maybe they should consider giving thought to open codecs like OGG, would solve a lot of problems...^^^ hes right...theres no way this gets through appelate court...

  24.2.2007 03:45 #3

• borhan9

  This article is confusing me. What exactly did Microsoft do with the MP3 technology??

  24.2.2007 10:29 #4

• ZippyDSM

  borhan9
  I believe it has something to do with their codec that can make a MP3,they might use soem of it to make WMA files or such.

  24.2.2007 10:55 #5

• borhan9

  Right. Thanxs for the clarification Zippy. :)

  24.2.2007 10:58 #6

• ZippyDSM

  Originally posted by borhan9:Right. Thanxs for the clarification Zippy. :)
  I might be wrong but I cant think what else it would be.

  24.2.2007 11:08 #7

• Skitzy

  Appeal, appeal, a pill.. it would take a great big pill to get over that one.. lol.. nah' We all know that one is gonna be overturned.

  24.2.2007 19:21 #8

• ogryzek

  The whole matter shows:
  1) how screwy US law has become.
  2) how ill equipped are the judges (usually men approaching 'golden years' of their life) when making decisions on cutting edge technological issues.

  24.2.2007 20:00 #9

• MS8er

  If they (MS)wrongfully bought the rights to this technology.. then why not give the rightful owners their share of profits...? The question is did Fraunhofer have the complete control of the patents..?

  28.2.2007 14:31 #10