Volume VII

Issue : 14: October 8, 2009

• AT and T Accuses Google of Violating Telecommunications Law
• Bank Email Error Results in Disabled Gmail Account
• Judges Question Damages in Microsoft i4i Patent Case
• Successful Appeal for Microsoft in Uniloc Patent Dispute as Bilski Looms
• Music Publisher Sues Apple Over iTunes Downloads
• Ontario Court Grants Norwich Order to Disclose Identity of Defendants
• U.K. Court Approves Injunction Service by Twitter

Home > Volume VII > Issue 14: October 8, 2009 > Judges Question Damages in Microsoft i4i Patent Case

Judges Question Damages in Microsoft i4i Patent Case

The U.S. Appeals Court for the Federal Circuit has taken issue with the $290 Million in damages that Microsoft Corp. was to pay Toronto-based software company i4i LP. The damages were awarded as part of a long-standing dispute over i4i patents related to the reading of XML (Extensible Markup Language). XML is a data file format that is used in MS Word and other office-productivity applications.

The calculation of damages in the original ruling was based on the premise that users who bought a $90 version of Windows would have paid considerably more for a substitute. Judge Kimberly Moore noted, however, that "not everyone who is willing to pay $90 or $200 for a product is willing to pay $500."

Despite the criticism of the calculation of damages, the Appeals Court took issue with Microsoft’s request that it overturn a lower court's finding that Microsoft had infringed i4i’s patent and should be barred from selling versions of Word that contain it. Microsoft acknowledged being in contact with i4i about the technology, but argued that there was no direct evidence that anyone at Microsoft had actually read i4i’s patent. Judge Alvin Schall stated, "I find it hard to believe that Microsoft didn't read the patent".

The Appeals Court judges have not indicated when they will finally rule on the matter.

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