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August 23, 2006 10:31 AM PDT

Patent verdict against Microsoft, Autodesk stands

A federal judge in Texas has delivered a setback to Microsoft and Autodesk in their patent infringement battle with product activation start-up Z4 Technologies.

U.S. District Judge Leonard Davis turned down the software makers' request for a new trial in a patent infringement lawsuit filed by Z4 Technologies and awarded enhanced damages, ordering Microsoft and Autodesk to pay a combined total of $158 million.

The initial suit was filed nearly two years ago by David Colvin, owner of Michigan-based Z4, over two product activation technologies. One of those technologies is designed to prevent unauthorized use of software; the other is used to combat piracy.

In a verdict reached April 19, a jury found that Microsoft and Autodesk had violated Colvin's patents; the companies' subsequent request for a new trial was turned down Friday. Microsoft is expected to challenge the verdict in the U.S. Court of Appeals.

Representatives for Microsoft and Autodesk, which had asked for a new trial on the basis that the patents were unenforceable because of inequitable conduct, were not readily available. The counsel for Z4 declined to comment.

Not only has the original verdict been upheld, but Microsoft's patent penalty has also been increased by $25 million for enhanced damages, bringing its total bill to $140 million. It also must pay an estimated $2 million in legal fees.

It's the second-biggest patent infringement fee that Microsoft has had to fork over to a smaller company, surpassed only by the $500-plus million that the Redmond, Wash.-based software behemoth was ordered to pay to Eolas Technologies in 2003. Microsoft's fines in antitrust cases, however, have reached into the billions of dollars.

The penalty for San Rafael, Calif.-based Autodesk, originally $18 million, has been increased by $322,000.

The East Texas Federal District Court is a frequent destination for patent infringement complaints, like this summer's Red Hat-JBoss lawsuit, because of its reputation for efficiency on cases in that field.

See more CNET content tagged:
Autodesk Inc., verdict, federal judge, trial, Microsoft Corp.

Add a Comment (Log in or register) 17 comments
Nearly every Microsoft technology was 'stolen'
by extinctone August 23, 2006 11:04 AM PDT
Every time Microsoft uses the term 'innovate', the hair on the back of my neck stands on end.
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MS & AutoDesk are bed buddies
by Llib Setag August 23, 2006 1:01 PM PDT
They have been in bed together since AutoCAD was in DOS / Unix / Mac formats. Once MS "convinced" them to port AutoCAD over to the "new Windows platform" lo & behold that was the ONLY platform that are working on ever since...

Coincidense?
I don't think so.
Reply to this comment
Bad decision
by qwerty75 August 24, 2006 5:07 AM PDT
As much as I despise the greedy arrogant ***** from MS, I have to defend them a tad. Even though they are guilty of the same thing. Abuses software patents.

This is yet another reason why patents in software is a bad thing. Copyrights are all software needs to be thoroughly protected. Imagine if all the great algorithms that are still in use today but were developed 30-40 years ago were patented. What if the OS was, or word processor.

Too many companies are coming up with obviouos ideas with prior art, not even implementing them, just patenting them and waiting for their cash cow to arrive.

Software is not anything like a real invention, especially when the patent applicant has only a vague idea not an implementation. But even attached to a real implimentation it is still a bogus patent,

Software is very much like a book, which any sane person would agree can not be patented. Software is just words in a certain order. All this talk about some new software being "new technology" is total crap. It is just words that do something that might be new, but the words and order of them are generally not new.

These software companies that are bottom feeding on others are holding back the software industry. Yes, it is delicious irony when a massive patent abuser like MS gets smashed in the face, but it is still wrong.

Luckily, most of the important tech countries are moving towards a total ban on patents, which will help the US towards the necessary goal of stopping predatory companies that create nothing, but suck out the life of companies that are doing real work.

Patents stifle innovation, period.
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