Patent ruling threats to halt Microsoft Word sales

By Hercules Kataveli, B2P
Published on Wednesday August 12, 2009 at 6:58 pm ET
Updated 08-12-09, 10:54 pm ET

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.

Microsoft Quarterly Revenue

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Hercules holds a B.Comm Finance from Ryerson University in Toronto, Canada. He is a Chartered Financial Analyst (CFA) level 3 candidate. He was previously a contributor at FiLife, a finance website owned by Dow Jones and IAC. Write to [email protected]
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  • MPad1

    The suit and verdict are ridiculous. I just read the patent and cannot believe the verdict was as it was. My more detailed analysis: http://domusinc.blogspot.com/2009/08/judge-rules-that-microsoft-must-stop.html.

  • Vealo

    i agree with u, everyone picks on microsoft…. good analysis

  • http://www.tutable.com socialbookmarking

    It seems everyone gets so upset about Microsoft and their products. I use Ubuntu – Open Source – and enjoy the same type of Microsoft products without the cost.

  • socialbookmarking

    It seems everyone gets so upset about Microsoft and their products. I use Ubuntu – Open Source – and enjoy the same type of Microsoft products without the cost.

  • Dave

    but r they as good and do they support everything as Word?

  • Dave

    but r they as good and do they support everything as Word?

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