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Wednesday, May 4, 2005
Microsoft loses a round in Eolas patent case
Microsoft Corp. lost a U.S. appeals court bid to limit the damages software makers can be ordered to pay in some patent-infringement cases, on its way to a new trial in a dispute over a method of surfing the Internet.
A jury had told Microsoft to pay Eolas Technologies Inc. $521 million for infringement. Yesterday, an appeals court let stand its earlier decision that upheld the infringement finding and ruled that Microsoft can be forced to pay damages based on overseas sales of software. Microsoft still gets a new trial to argue that the patent is invalid.
The case involves a 2003 award to closely held Eolas by a jury that decided Microsoft's Internet Explorer browser infringed an Eolas patent on technology for reading information stored on the Internet.
Intel Corp. and Time Warner Inc.'s America Online supported Microsoft's argument that damages in such patent-infringement cases shouldn't include global sales when disks containing software code have been sent overseas.
Microsoft said in court papers that more than 64 percent of the $521 million award was based on computers "made, sold and used entirely in foreign countries."
The U.S. Court of Appeals for the Federal Circuit ruled March 2 that Microsoft's software on computers sold overseas was covered by a U.S. patent because it had been copied from a master program developed in the United States.
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