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Microsoft loses Word appeal, must pay $290 million and change software

by Scott Bicheno on 23 December 2009, 09:56

Tags: Microsoft (NASDAQ:MSFT)

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The word of the law

Software giant Microsoft has lost its latest appeal in a case brought against it by Canadian software company i4i and had been ordered to pay $290 million in damages and costs. Furthermore, it must stop selling software containing the disputed functionality by 11 January 2010. However, this only applies in the US.

Back in March 2007 i4i filed a legal action against Microsoft, alleging that some of the XML editing functionality that had been introduced into Word 2003, and retained in Word 2007, infringed on some of its patents.

On 11 May 2009, this action went to a jury trial, which found against Microsoft and awarded i4i $200 million in damages. On 11 August the court filed an injunction banning Microsoft from selling any Word products that infringed the patents, to come into effect in 60 days time. Microsoft successfully filed for a temporary stay of that injunction and appealed. That appeal has been lost and Microsoft must now comply by the new date.

Kevin Kutz, director of public affairs at Microsoft, was quick to issue a response to the ruling. "This injunction applies only to copies of Microsoft Word 2007 and Microsoft Office 2007 sold in the U.S. on or after the injunction date of January 11, 2010. Copies of these products sold before this date are not affected," he said.

"With respect to Microsoft Word 2007 and Microsoft Office 2007, we have been preparing for this possibility since the District Court issued its injunction in August 2009 and have put the wheels in motion to remove this little-used feature from these products. 

"Therefore, we expect to have copies of Microsoft Word 2007 and Office 2007, with this feature removed, available for U.S. sale and distribution by the injunction date.  In addition, the beta versions of Microsoft Word 2010 and Microsoft Office 2010, which are available now for downloading, do not contain the technology covered by the injunction."

 



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they should just say that they'd give i4i a 5% cut in infringing sales