Microsoft Loses Appeal, Still Forbidden to Sell Word in 2010

Posted by Daniel Shain

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Remember that court case we mentioned last August, where little known software company i4i of Toronto claimed Microsoft violated its 1997 patent for custom XML in its versions of Word? At the time, we were somewhat skeptical, thinking these guys might get paid quickly and quietly, or else this decision would drag on until it was flat out overturned. Well, it's beginning to look like the latter, with the next chapter in the case unfolding this week. However, something is a little off.

It is i4i whose position is being upheld, and Microsoft who is left floundering to appeal. Now, lest we overestimate the chances of Microsoft actually being forbidden to sell Word, their fattest of cash cows, Microsoft has already begun creating a new version of their software without the offending XML code that will be ready for sale in time for the January 11 deadline. But if they're found guilty (they are considering appealing again), that won't stop the courts from ordering them to shell out the dough.

This case has been brewing since 2007, and with this latest loss in a federal appeals court, it seems possible Microsoft will simply pay and be done with it. Of course, lawyers are hungry for cash, so and if they can convince ol' MS they have a chance of overturning this thing with another appeal, they will probably try. Existing users of Word will be unaffected by this ruling, a new version of Word will be ready for the 11th, and the Office 2010 beta does not infringe on that patent, so for the most part consumers should be unaffected by this debacle.

But i4i could get a fat payday. We'll keep you posted.

Via NYT

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