[ale] Microsoft Loses $521,000,00 to Univ. of Cali

[Bob Toxen]

Microsoft Loses $521 Mln Verdict Over Internet Patent (Update1) 

Aug. 11 (Bloomberg) -- Microsoft Corp. must pay $521 million to the
University of California and a Chicago company, which claimed their patents
were infringed by the software giant's Internet Explorer Web browser, a jury
decided. 

The jury concluded that Microsoft infringed a patented method of allowing an
Internet browser to access interactive application programs. The University
of California and Eolas Technologies Inc. claimed the method was critical to
the success of Internet Explorer. Eolas had sought as much as $1.2 billion,
claiming the invention enabled Microsoft to compete with the Netscape
Navigator browser, now owned by AOL Time Warner Inc. 

``While today's outcome is disappointing, this is just one step in a long
process,'' Microsoft spokesman Jim Desler said. ``We plan to appeal this
decision, and we are confident the facts will support our position.'' 

Redmond, Washington-based Microsoft argued that its Web browser is
fundamentally different than the university's invention. The technology
allows computer users to interact with applications on the Internet, such as
a game of solitaire or an interactive map of Chicago. 

Internet Explorer's system to locate and identify applications on the Web
depended on the Microsoft operating system, and is not browser-based,
Microsoft attorney David Pritikin, of the Chicago-based law firm of Sidley,
Austin, Brown & Wood, told jurors on Friday. 

The Eolas request for $1.2 billion in damages was based on a $3.50 royalty
per unit sold between Nov. 1, 1998, and Sept. 30, 2001. Closely held Eolas
was founded by former University of California professor Michael Doyle. 

Last Updated: August 11, 2003 16:28 EDT 
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