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Microsoft to pay $1.52B damages to Alcatel-Lucent

Posted: 26 Feb 2007 ?? ?Print Version ?Bookmark and Share

Keywords:Alcatel-Lucent? Microsoft? patent fight? MP3 player?

Microsoft Corp. takes a blow in its patent fight with Alcatel-Lucent after a court jury ordered the software manufacturer to pay $1.52 billion in damages for infringing on the London-based company's MP3 decoding technology.

Tim Burt, the company's corporate VP and general counsel said in a Feb.22 statement, "We think this verdict is completely unsupported by the law or the facts. We will seek relief from the trial court, and if necessary appeal."

Burt said that they have licensed the technology involved from its licensor, Fraunhofer, for $16 million. "Today's outcome is disappointing for us and for the hundreds of other companies who have licensed MP3 technology."

He said that the decision opens the door for Alcatel-Lucent to pursue action against hundreds of other companies who purchased the rights to use MP3 technology from Fraunhofer. He added that Microsoft is pursuing a number of patent claims against Alcatel-Lucent, including the International Trade Commission case it has recently filed.

Alcatel has not released a statement on the matter as of press time.

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