Microsoft slapped with patent madness, what's next?

Filed under: Audio, Business, News, Windows, Microsoft

Microsoft slapped with patent madness, what's next?

by Grant Robertson Feb 24th 2007

The news of Microsoft's techslap -- handed down by a San Diego court to the tune of $1.5 Billion dollars in damages as penalty for Mp3 patent infringement -- may have been greeted by cheering Microsoft bashers but, the size and scope of the settlement re-opens the wounds of a US patent system gone horribly wrong.

The case in question dates back to 2003, and its settlement cost could have been three times larger if the court ruled the infringement to be willful. Microsoft in fact did have a license to use the Mp3 encoding technology, from German company Fraunhofer, who co-developed the Mp3 specification in tandem with Lucent's forefather, Bell Labs. Microsoft's license to Fraunhofer for the same intellectual property cost only $16 Million; The California settlement is equal to 93 times the original cost of that license.

Patent cases in the US are spiraling out of control. Last year it cost RIM over $600 million dollars to settle the lawsuit against its Blackberry devices and, to make matters worse, new and more esoteric patents are being issued all the time. If left unsolved by the politicians, where does this insane patent spiral lead us in the long term?

Tags: microsoft mp3, MicrosoftMp3, mp3 patent, Mp3Patent, patent, patent law, PatentLaw

Reader Comments (Page 1 of 1)

Fullman said 8:08PM on 2-24-2007

I couldn't agree more, these patents are getting ridiculous. Patent firms that don't even create the technology gobble up patents or patent ideas without any intention of creating them, and when the time comes (usually always once they can get as much money as possible after years of use and popularity) they come suing out of the woodwork.

If MS already paid for the technology, why is an award of that amount even an option? Because it was used in the UK? Big deal, the UK is smaller than the US, and the reward should be less than the amount paid for the US license.

The RIM suit was ridiculous, and the same company is going after MS now.

The entire patent system needs an overhaul, outdated ideas with good intentions often lead to disaster.

Brian said 8:49PM on 2-24-2007

Where does it lead us? To the end of the world as we know it? If so, it can't happen soon enough.

I can think of nothing more just than THE modern system of government and commerce crashing down as a direct consequence of its own greed, lust for power, and pride. Yay!

Shoaib said 12:34AM on 2-25-2007

"New Technology + Old Habits = Unpredictable consequences"- Al Gore (he said something really close to that, I can't remember exactly what)

Phil said 1:03AM on 2-25-2007

What patent madness? As soon as my patent on language comes through, you will owe me ... bwaaaahahahaha!

Joe said 6:21AM on 2-25-2007

Phil, you're too late. Ironically Microsoft beat you to the punch...

http://www.theonion.com/content/node/29130

LordDaMan said 11:25AM on 2-25-2007

What's scary about this, is that it may mean anyone who lisnced through mp3lisceing.com (run by thomson, which handles patents for Fraunhofer) may be hit by a lawsuit.

Thats..just about everyone and nayone who uses mp3 in some commercal way

short7cents said 6:58AM on 2-27-2007

Don't worry about billion dollar lawsuits everywhere you turn, these companies will just yawn, raise their prices, and pass it on to the consumers. No problem.

asurroca said 10:35AM on 3-01-2007

I guess the best we can do as consumers is boycott any company that pulls this. Time to re-encode all your MP3s people!

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