Microsoft Ordered to Pay $1.52 Billion for MP3 Patent Infringement
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Microsoft Ordered to Pay $1.52 Billion for MP3 Patent Infringement

#  Feb 23, 2007 at 11:39 AM
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Feb 05, 2007
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Alcatel-Lucent draws big buckets of blood in continuing legal battles with Microsoft

Microsoft must pay $1.52 billion for infringing on two Alcatel-Lucent patents involving MP3, a San Diego federal jury ruled today. This is the first of six patent lawsuits brought by Paris-based telecom equipment maker Alcatel-Lucent. Microsoft intends to ?seek relief from the trial court, and if necessary appeal.?

The lawsuit contends that Microsoft violated Alcatel-Lucent?s patents with its use of MP3 technology used to play music on Windows Media Player. Microsoft?s argument is that it legally licensed MP3 technology from the Fraunhofer Institute for $16 million.

?We think this verdict is completely unsupported by the law or the facts,? said Tom Burt, a Microsoft deputy general counsel. ?We believe that we properly licensed MP3 technology from its industry recognized licenser - Fraunhofer. The damages award seems particularly outrageous when you consider we paid Fraunhofer only $16 million to license this technology.?

?We have made strong arguments supporting our view, and we are pleased with the court's decision,? said an Alcatel-Lucent spokeswoman.

This lawsuit stretches back to 2003, when Lucent filed 15 patent claims against Gateway and Dell. Microsoft later agreed to replace those defendants, saying it got involved because the patents were closely tied to its Windows operating system, reports Reuters.

MP3 isn?t the only technology that Alcatel-Lucent is suing Microsoft for patent infringement. In November 2006, Alcatel-Lucent filed a lawsuit against Microsoft for infringement of seven video technology patents, likely because of the Xbox 360.

Source: Daily Tech
#  Feb 23, 2007 at 11:41 AM
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I find this report very ironic, but anyway I dont think Alcatel-Lucent will win.
#  Feb 25, 2007 at 4:31 PM
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Fraunhofer never paid any attention to people using MP3 until it started getting so popular, then they claimed that everyone owed them a fortune. I was under the impression that MS and Apple both paid blanket licenses to use MP3 in their products.
#  Mar 12, 2007 at 12:21 AM
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Mar 07, 2007
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This is exactly what is wrong with the patent system today. He didn't care until he saw that he could sue everyone and make a fortune. This is all about the money not IP.
#  Mar 21, 2007 at 10:54 PM
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I think that people should move to an open format. Ogg Vorbis is just as good, better even. The files are just as small, and the algorithm is just as simple. It would be beyond dirt cheap to add a chip to support it just like MP3. And no more patent issues.
#  Mar 22, 2007 at 2:58 AM
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Mar 07, 2007
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But then people will have to buy OGG Vorbis players, it just doesn't have the same ring to it!

All kidding aside, I agree with you, it's sort of silly MP3 is so widely used I'm surprised they made this decision.
#  Mar 23, 2007 at 11:50 PM
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Feb 20, 2007
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I think that they are worried that if they did not support a widely used format, nobody would buy their product. Truth is, if a big company like Microsoft put out a player that played exclusively, say, OGG, enough people would buy it that the format would become popular. After people know about it, they will use it. But it will never happen.

By the way, I saw a portable player a while back that supported OGG.
#  Apr 27, 2007 at 12:01 PM
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Apr 27, 2007
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4
MS should just buy out the company and fire its head honchos and then sell the company. LOL
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