Supreme Court Case Against Microsoft Patent I4i

The U.S. Supreme Court affirmed the lower court's decision today that Microsoft infringed patents for a small Canadian company i4i, and the software giant needed to pay $ 290 million.

The decision could have broad impact on how patent law applied to technology. Microsoft had hoped the court to change the standard by which patents could be invalidated, which requires a "preponderance of the evidence." But the court upheld the current "clear and convincing evidence" to decide i4i.

In a statement, Microsoft expressed disappointment with the decision.

"This case has raised an important question of law, the Supreme Court had challenged an earlier decision, we thought it necessary to resolution," the company said in a statement. "Even if the result is not what we had hoped, we continue to support for legislative changes that the abuse of the patent system and to protect inventors who hold patents represent a true innovation."

Writing the majority decision Justice Sonia Sotomayor said the key issue in the case was whether the law in question requires the defense of invalidity must be proven in a clear and convincing evidence.

"We think this is the case," Sotomayor wrote.

Acknowledged the wider political issues in the case, taking into account the arguments of some of the biggest names in American business by aligning both sides of the case. But Sotomayor wrote that the decision to change the standard of proof to invalidate a patent based on the Congress, not the courts.

"All the re-calibration of the standard of proof is in his hands," said Sotomayor.

Sotomayor was accompanied by six other judges, with Justice Clarence Thomas wrote a separate concurring opinion. Chief Justice John Roberts was not involved in this case because it has more than $ 100,000 in Microsoft stock.

The decision was a vindication for Microsoft i4i painted as something of a troll patents, which wants to exploit the deep pockets of the software giant with a questionable infringement action. But the company of 30 employees resisted costly lawsuits by massive multinationals.

"The only thing we are told again and again summer does not. We were told that you can not win," said President i4i Loudon Owen.

The decision removes uncertainty for customers and partners i4i.

"All I know is that its patents are involved," Owen said, adding that the company has not yet determined how it will use the proceeds of litigation.

Read more: http://news.cnet.com/8301-10805_3-20070308-75/supreme-court-rules-against-microsoft-in-i4i-patent-case/ # ixzz1Oo5T0Tpd