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Time to gloat, Microsoft has to shell out $1.5 billion

Posted by Derik DeLong | Friday, February 23, 2007 6:33 AM PT

Alcatel-Lucent Alcatel-Lucent has totally put the smack down on Microsoft in court. For its unauthorized use of patented MP3 technology, the ultra-mega giant has been slapped with a huge $1.5 billion bill. Even big daddy Gates would probably have to visit an ATM to pay it.

“We think this verdict is completely unsupported by the law or the facts,” the company said in a statement. “Like hundreds of other companies large and small, we believe that we properly licensed MP3 technology from its industry recognized licensor—Fraunhofer. The damages award seems particularly outrageous when you consider we paid Fraunhofer only $16 million to license this technology.”

I actually see their point. I’d be a little frustrated too if I licensed a technology from someone else and then got sued for it. The pain likely won’t end there as there are five groups of patent infringments left to be tried.

Microsoft has a long, expensive road ahead. Good luck with that. Let’s hope a similar suit isn’t in the works for Apple and iTunes.

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