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Microsoft Gets a Second Chance in $521M Web Browser Patent Suit
The U.S Court of Appeals for the Federal Circuit has ordered a new trial on two issues raised by Microsoft Corp. in its appeal of a jury verdict awarding $521M plus pre-judgment interest in a patent suit over its Internet Explorer (IE) browser. The suit was brought by Eolas Technologies Inc. and the University of California, licensor to Eolas of a U.S. patent to technology that allows a web browser to access interactive features of a web page.
The appellate court decided that the District Court judge at first instance erred in keeping evidence from the jury in two grounds of defence raised by Microsoft. The first evidence related to the public use of another browser, which could render invalid the patent in suit. The second evidence related to an allegation of inequitable conduct before the U.S. Patent and Trademark office and the duty of candor owed by inventors and others associated with a patent application to disclose all information material to the patentability of an invention. Microsoft alleged that an inventor of the patent in suit was aware of the prior use of the other browser and ought to have disclosed same when obtaining the patent.
Importantly, the appellate court ruled against Microsoft on the meaning of a portion of section 271(f) of the patent code, which makes it an infringement of a U.S. patent to supply "components" of an invention to be combined outside the U.S. Microsoft's golden master disks supplied from the U.S. to make software abroad are "components" within this section and Microsoft remains liable for the portion of the $521M award related to IE software made and distributed outside the U.S.
For more information, visit:
http://www.pcworld.com/news/article/0,aid,119880,00.asp
For a copy of the decision, visit:
http://www.fedcir.gov/opinions/04-1234.pdf