Microsoft loses a big one
Microsoft Loses $521 Mln Browser Verdict
Monday August 11, 10:10 pm ET
By Reed Stevenson
SEATTLE (Reuters) - A federal jury in Chicago awarded the University of California and a browser technology company $520.6 million after finding on Monday that their patents were infringed by Microsoft Corp. .
The suit, originally brought against the world's largest software maker in 1999 by Eolas Technologies Inc., charged that Microsoft had used Eolas' patented Web browser technology which allows other mini-applications to work with Microsoft's Internet Explorer browser, according to court documents.
Eolas had argued that the technology for "plug-ins" and "applets" made it possible for Microsoft to compete against the Netscape Navigator browser.
Netscape, which eventually became part of AOL Time Warner Inc., later lost its position as the top Web browser to Microsoft's Internet Explorer.
Eolas, a closely held Illinois company founded by former University of California professor Michael Doyle, had originally sought licensing fees that would potentially have totaled $1.2 billion.
This is a biggie.
"[P]lug-ins" and "applets" would include not only Active-X but Java as well. If Microsoft is vulnerable to this, so is Sun. And someone correct me if I'm wrong, but even if Microsoft's defense is 100% true:
In a statement, Microsoft said, "We believe the evidence will ultimately show that there was no infringement of any kind, and that the accused feature in our browser technology was developed by our own engineers based on preexisting Microsoft technology."
…it doesn't matter if the patents are held to be valid on appeal. Eolas not only has a huge bag of money, they have what may be the widest deepest revenue stream for doing nothing that is possible. Because Microsoft, Sun and I don't know who else...possibly every corporation and developer that markets Java or Active-X technology (think Adobe, Macromedia, all the major players) will have to license this patent to stay in business. And things being as they are, Eolas could be extremely coercive as long as they don't kill the golden goose.
Eolas is the first company in a long time that is in a position to dictate to Microsoft.
Microsoft will appeal. This isn't over.
posted by Prometheus 6 at 8/12/2003 06:03:07 AM |
