Microsoft outraged as it’s sued for $290m

by Maddie on August 14, 2009

Microsoft has been fined yet again and ordered to pay $290 million to Canadian company i4i for patent infringement.

Toronto company i4i were awarded the fee after convincing a Texas court that Microsoft had deliberately infringed one of their patents when creating Microsoft Word and in the making of its latest operating system, Vista.

However, the case has been shrouded in controversy following Microsoft’s claims that i4i ‘shopped around’ for a friendly court to guarantee itself a win.

Software goliath, Microsoft, is up in arms over the decision and question why a Canadian company would take them to court in Texas. Microsoft themselves are based in Washington state, over 2,000 miles away from Texas.

The Texas Eastern district is well known for its high rate of success, fast turnarounds and large rewards for patent litigants, with Judge Leonard Davis taking the seat for many of the cases.

Asked why they chose to sue Microsoft in Texas, lead lawyer for prosecution, McKool Smith’s Doug Cawley, said, “i4i sued in Tyler, Texas because the time to trial is short”.

He went on to say, “Judge Davis in Tyler worked his way through school as a computer programmer and systems analyst, so he is familiar with this type of technology.”

It is also important to note that Judge Davis and the Texas Eastern district have previously rejected patent infringement claims against Microsoft, notably in the case of Fenner Investments, who believed that Microsoft and Nintendo had used their technology to create a joystick add-on.

Only last month, Microsoft was made to pay $388 million in another patent infringement case, relating this time, somewhat ironically, to its anti-piracy software.

Microsoft will appeal against this latest judgement as they look to recoup the $290 million awarded to i4i.

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