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Microsoft slapped with patent madness, what's next?


The news of Microsoft's techslap -- handed down by a San Diego court to the tune of $1.5 Billion dollars in damages as penalty for Mp3 patent infringement -- may have been greeted by cheering Microsoft bashers but, the size and scope of the settlement re-opens the wounds of a US patent system gone horribly wrong.

The case in question dates back to 2003, and its settlement cost could have been three times larger if the court ruled the infringement to be willful. Microsoft in fact did have a license to use the Mp3 encoding technology, from German company Fraunhofer, who co-developed the Mp3 specification in tandem with Lucent's forefather, Bell Labs. Microsoft's license to Fraunhofer for the same intellectual property cost only $16 Million; The California settlement is equal to 93 times the original cost of that license.

Patent cases in the US are spiraling out of control. Last year it cost RIM over $600 million dollars to settle the lawsuit against its Blackberry devices and, to make matters worse, new and more esoteric patents are being issued all the time. If left unsolved by the politicians, where does this insane patent spiral lead us in the long term?

Tags: microsoft mp3, MicrosoftMp3, mp3 patent, Mp3Patent, news, patent, patent law, PatentLaw

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