A Texas-based court has just ruled in favor of a Toronto-based company, i4i Corp., in a patent dispute with Microsoft Corp.

The judge has ordered Microsoft to stop selling its popular document processing software Word 2003 and 2007 versions in the U.S. after Microsoft was found willingly infringing on patents obtained by i4i in 1998.

The judge also ordered Microsoft to pay US $290 million in damages to i4i, and has given Microsoft 60 days to comply.

The patents relate to how documents are launched and displayed with the XML computer language.

Microsoft spokesman Kevin Kutz said today, “We believe the evidence clearly demonstrated that we do not infringe and that the i4i patent is invalid.” He also expressed Microsoft’s disappointment in the ruling.

An actual halt of Word software sales is extremely unlikely given the appeal process, a possible licensing settlement and other technical and legal workarounds.

Microsoft failed to comment as to how an injunction would affect the company’s bottom line, and only stated it would appeal the decision.

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