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Top U.S. court intervenes in Microsoft patent dispute

Fred Derf   on 28 October 2006 - 16:31 · 15 comments & 7739 views

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The Supreme Court will intervene in a patent dispute between Microsoft Corp. and AT&T Corp. over Windows programs distributed overseas that contain AT&T "speech codecs". An appeals court had already ruled that Microsoft had infringed on an AT&T patent and Microsoft has already admitted liability for domestic sales of Windows.

The Supreme Court will hear whether or not Microsoft will be liable for international sales. A judgment in AT&T's favour could cost Microsoft up to $1 billion U.S. dollars.

The crux of the case comes down to whether or not the courts of the United States have the jurisdiction to extend U.S. patent protections to overseas transactions. Some worry that such a ruling could drive software development out of the country.

Needless to say, AT&T has another opinion: "Congress's congressional authority is to protect the rights of U.S. inventors, not U.S. infringers."

Chief Justice John Roberts took no part in the court's decision to hear the case. The court offered no explanation, but Roberts' most recent financial disclosure shows that he owns between $100,000 and $250,000 in Microsoft stock.

News source: The Toronto Star

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(2 replies) #1 stgeorge on 28 Oct 2006 - 16:36
That's interesting, what if all the justices owned MS stock? Maybe Billy G should start gifting some shares...
#1.1 +GreyWolfSC on 28 Oct 2006 - 19:24
Quote - stgeorge said @ #1
That's interesting, what if all the justices owned MS stock? Maybe Billy G should start gifting some shares...


If that were the case they would either have to recuse themselves from the decision or divest their stocks. That's why Roberts didn't take part in the decision.
#1.2 stgeorge on 29 Oct 2006 - 15:30
So all the judges would have to recuse themselves, and the case couldn't go to the Supreme Court? Well Billy G only has to buy out 5 judges then.
(1 reply) #2 +Lt-DavidW on 28 Oct 2006 - 17:20
One BILLION dollars...! muhahaha!!
#2.1 gadean on 29 Oct 2006 - 04:58
Quote - Lt-DavidW said @ #2
One BILLION dollars...! muhahaha!!

haha yeah, Austin Powers was a great movie.
#3 Fred Derf on 28 Oct 2006 - 17:29
The ways things are going, I should encourage my kid to be an intellectual property lawyer.

Hopefully I'm not breaking any intellectual properly laws by saving that.
#4 ScottKin on 28 Oct 2006 - 18:08
Yes, you are, Fred - and my lawyers are going to sue you in the amound of 500 Fafillion Dollarrrr!


#5 +niel19_us on 28 Oct 2006 - 19:26
If microsoft has to pay the billion dollars, then of cource they are going to give the job overseas. So either microsoft give a billion dollars to at&t and ship job overseas or fine microsoft for couple of million dollars and keep the america job in america rather then shipping to some other country. Hmmm choicess choicess.
#6 +guylaroche on 28 Oct 2006 - 21:47
Wow. As a MS investor, this sucks big time...
(3 replies) #7 aStRaLgOd on 29 Oct 2006 - 01:21
Jesus christ, Everyone in the US are sueing everyone and everything........
#7.1 gadean on 29 Oct 2006 - 04:59
Quote - aStRaLgOd said @ #7
Jesus christ, Everyone in the US are sueing everyone and everything........

sort of ridiculous, isn't it?
#7.2 werejag on 29 Oct 2006 - 06:23
Quote - aStRaLgOd said @ #7
Jesus christ, Everyone in the US are sueing everyone and everything........


i sue you for using the saviors name in vain and in a seprate but related case i sue you for defamation of 300million ppl including but not limited to me.

ill take an out of court settlement. 3 billion dollars usd.
#7.3 aStRaLgOd on 29 Oct 2006 - 13:26
Quote - werejag said @ #7.2
Quote - aStRaLgOd said @ #7
Jesus christ, Everyone in the US are sueing everyone and everything........


i sue you for using the saviors name in vain and in a seprate but related case i sue you for defamation of 300million ppl including but not limited to me.

ill take an out of court settlement. 3 billion dollars usd.


Well I'm gonna counter-sue you and get 6 millions in emotionnal compensation.
#8 fluent on 30 Oct 2006 - 08:59
3 billion > 6 "millions"
#9 hapbt on 30 Oct 2006 - 15:46
Hmm I wonder if this is a new Microsoft paradigm -- steal the technology, then sell it, then fight in court just long enough to make the whole thing still turn a profit even after you've paid damages...
First they pioneered taking BSD license code and using that while all the while badmouthing the open source model, then they went with buying out small technology companies (Giant software anyone? Vermeer technologies?) and using their marketing power to turn those little gems into a tidy profit, and now it's steal whatever you want and pay a fraction of your profits if you get caught!
Microsoft -- redefining ethics for the 21st century!

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