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Microsoft loses another patent suit, must pay $105 million

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On March 17, 2010, 2:49 PM EST

Microsoft has suffered another legal blow, yet again for patent infringement. A Texas court on Tuesday ordered the software giant to pay $105.75 million to VirnetX for violating two patents (6,502,135 and 7,188,180) pertaining to VPN technology, which has supposedly been used in products including Windows XP, Vista, Office, and Windows Messenger.

VirnetX initially sought $242 million, but the company's lawyer deemed the award "fair" and "will within the range that is reasonable." Nonetheless, since Microsoft was found guilty of willful infringement, the judge could as much as triple the jury's award.

Naturally, Redmond isn't pleased with the ruling and it plans to appeal. "We respect others' intellectual property, and we believe the evidence demonstrated that we do not infringe and the patents are invalid," said Microsoft's Kevin Kutz.

This loss comes just after Microsoft's failed appeal in the patent infringement case against Canadian company i4i. In that suit, Redmond faced a sales injunction against Word, and will have to dole out $290 million in penalties.

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User Comments (32)

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levar
on March 18, 2010
2:20 PM

Another patent!!?! Come on M$ I really don't care anymore Microsoft needs to get its act up its one after the other. The i4i, now VirnetX! Who's next? In my last comment in the previous related article I said something about them losing or gaining profit from selling Office..etc now I think they're just all of it. But they'll survive they got money but how much more do they have for all this? I wonder if the the patents are invalid :/ good luck M$

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ansarimikail
on March 18, 2010
2:59 PM

Wonder what they do besides infringing. They should have enough dough to cover it from Win7 being fastest OS seller and all.

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DragonMasterJay
on March 18, 2010
4:15 PM

Not that Microsoft deserves it, but they need to realize that they do not need to be the king of technology. There are great entrepreneurs out there that Microsoft is stealing from. I think personally, they should start creating their own stuff and own variations, so they do not end in messes such as this.

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captaincranky
on March 18, 2010
6:31 PM

Not that Microsoft deserves it, but they need to realize that they do not need to be the king of technology. There are great entrepreneurs out there that Microsoft is stealing from. I think personally, they should start creating their own stuff and own variations, so they do not end in messes such as this.
Let's assume I agree that M$ is the evil empire. However, I sometimes wonder if their software engineers propagate the theft, by passing off the work of others more clever than themselves, as their own. It is possible that some of this could happen without corporate knowledge. I suppose that it's also possible for two people to "write the same song", as it were. Not likely, but possible.

Then again, it's also possible that from time to time, a few M$ suits head into a conference room ,light up some cigars, and put their minds into how they could steal something they want without being caught.

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9Nails
on March 18, 2010
10:30 PM

captaincranky said:

Let's assume I agree that M$ is the evil empire. However, I sometimes wonder if their software engineers propagate the theft, by passing off the work of others more clever than themselves, as their own. It is possible that some of this could happen without corporate knowledge. I suppose that it's also possible for two people to "write the same song", as it were. Not likely, but possible.

Then again, it's also possible that from time to time, a few M$ suits head into a conference room ,light up some cigars, and put their minds into how they could steal something they want without being caught.

With all the crap patents out there, I don't think that you can write any code without infringing on someone else's design these days. I don't think the patent office actually patents a song, based on lyrics. But instead patents what is expressed in the song. And now you don't have to prove that Microsoft used your lyrics, only that it wrote a song about trains, momma, and the pick-up truck. And if you got there first, you win.

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captaincranky
on March 18, 2010
11:28 PM

I don't think the patent office actually patents a song, based on lyrics. But instead patents what is expressed in the song. And now you don't have to prove that Microsoft used your lyrics, only that it wrote a song about trains, momma, and the pick-up truck. And if you got there first, you win.
This is a great analogy!

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compdata
on March 19, 2010
9:09 AM

I am pretty curious how they determine damages on cases like this? Is it based on the percentage of code that was based on the patent vs the total amount of code times the amount of sales? $100 million is a lot of money, but really not that significant for MS.

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