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Canadian firm gets patent win over Microsoft
A U.S. judge issued a permanent injunction preventing Microsoft Corp. (MSFT-Q23.600.472.03%) from selling its flagship “Word” software in the United States, agreeing with a jury verdict that the company willfully violated a patent held by a small Toronto firm.
Judge Leonard Davis of the U.S. District Court for the Eastern District of Texas on Tuesday upheld a verdict won by i4i Inc. in May and awarded the firm damages of about $290-million (U.S.).
Microsoft, the world's largest software company, now has 60 days to comply with the injunction.
“We are disappointed by the court's ruling,” said Kevin Kutz, a Microsoft spokesman. “We believe the evidence clearly demonstrated that we do not infringe and that the i4i patent is invalid. We will appeal the verdict.”
I4i sued Microsoft in March, 2007, claiming the Redmond, Wash., company had infringed on a patent awarded in 1998 for manipulating complex data in electronic documents. The jury verdict had initially recommended damages in the amount of $200-million.
The injunction will bar Microsoft from selling its word-processing software that handles documents in a form known a “custom XML.” This category includes the company's Word 2003 and Word 2007 products, as well as any future versions using the same technology in question.
“We feel vindicated with this result,” said Michel Vulpe, the founder of privately-held i4i and an inventor of the disputed patent.
The firm said that several years ago it approached Microsoft with a breakthrough product in data processing, only to be spurned and to see its technology show up later in versions of Microsoft Word.
Microsoft argued unsuccessfully that it had not infringed and that the patent in question was invalid. A company spokesman was not immediately available for comment.
“The permanent injunction is an important determination for i4i and for the rights of all patent owners,” said Loudon Owen, chairman of both i4i and McLean Watson Capital Inc., a Toronto-based venture capital firm that along with Northwater Intellectual Property Fund acquired a stake in i4i and helped fund the case against Microsoft.
A U.S. judge issued a permanent injunction preventing Microsoft Corp. (MSFT-Q23.600.472.03%) from selling its flagship “Word” software in the United States, agreeing with a jury verdict that the company willfully violated a patent held by a small Toronto firm.
Judge Leonard Davis of the U.S. District Court for the Eastern District of Texas on Tuesday upheld a verdict won by i4i Inc. in May and awarded the firm damages of about $290-million (U.S.).
Microsoft, the world's largest software company, now has 60 days to comply with the injunction.
“We are disappointed by the court's ruling,” said Kevin Kutz, a Microsoft spokesman. “We believe the evidence clearly demonstrated that we do not infringe and that the i4i patent is invalid. We will appeal the verdict.”
I4i sued Microsoft in March, 2007, claiming the Redmond, Wash., company had infringed on a patent awarded in 1998 for manipulating complex data in electronic documents. The jury verdict had initially recommended damages in the amount of $200-million.
The injunction will bar Microsoft from selling its word-processing software that handles documents in a form known a “custom XML.” This category includes the company's Word 2003 and Word 2007 products, as well as any future versions using the same technology in question.
“We feel vindicated with this result,” said Michel Vulpe, the founder of privately-held i4i and an inventor of the disputed patent.
The firm said that several years ago it approached Microsoft with a breakthrough product in data processing, only to be spurned and to see its technology show up later in versions of Microsoft Word.
Microsoft argued unsuccessfully that it had not infringed and that the patent in question was invalid. A company spokesman was not immediately available for comment.
“The permanent injunction is an important determination for i4i and for the rights of all patent owners,” said Loudon Owen, chairman of both i4i and McLean Watson Capital Inc., a Toronto-based venture capital firm that along with Northwater Intellectual Property Fund acquired a stake in i4i and helped fund the case against Microsoft.
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