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An obscure patent dispute has prompted a Texas District Court judge to order Microsoft to stop selling Word.
I4i, a software company based in Toronto, has been squabbling with Microsoft over a patent related to XML, or Extensible Markup Language. XML is a key software component of many websites as well as Word and other programs.
Judge Leonard Davis ruled Tuesday that Microsoft is at fault, and ordered the company to cease Word sales until the dispute is resolved. He also ordered Microsoft to pay several hefty fines to i4i, including $200 million in damages and $40 million in "enhanced damages." You can read the ruling here.
The decision may not stand for long. "We are disappointed by the court's ruling," says Microsoft spokesman Kevin Kutz, in a quote reported by the Seattle P-I. 'We believe the evidence clearly demonstrated that we do not infringe and that the i4i patent is invalid. We will appeal the verdict.'"
Patent disputes are common in the tech industry. Normally these issues proceed quietly, with little impact on customers. But the judge's ruling could have an unusual effect on the software industry's most powerful player.
In 2006, a patent dispute between Research In Motion, the maker of the BlackBerry smart phone, and a tiny company called NTP threatened to shut down all BlackBerry service in the U.S. The case was eventually settled.
By Michelle Kessler