That's right, with so many items to report regarding the software giant, I had to make a whole new post to fit it all.
I will start off with a new lawsuit Microsoft is facing, tiny company InterTrust Technologies claims that 85% of Microsoft's entire product line infringes its digital security patents:

Though InterTrust declines to place a pricetag on the suit, it's hard to imagine the company settling now for any sum that does not have a "B" in it. InterTrust claims that its inventions cover technologies that Microsoft has been weaving into its Windows XP operating system, Office XP Suite, Windows Media Player, Xbox videogame console, and .NET networked computing platform, to name just a few.

In other news, both Bill Gates and Steve Ballmer (CEO) talk about the future of IT (see links). Ballmer said much of the potential gains technology has to offer have yet to be realized, he cited next-generation Windows "LongHorn" as a first step, Gates agreed saying he is excited and focused on six big things going forward, among those, the new Windows File System.

Last but not least, Microsoft's Chairman also announced the company plans to boost its R&D budget by more than 8 percent in its new fiscal year, to $6.8 billion, a move expected to result in up to 5,000 new employees.