Microsoft to pay Alcatel-Lucent $1.5 billion in patent dispute

Audio patents in Windows Media Player

23 February 2007 0:00 GMT / By Stuart Miles

News is starting to hit the wires that a US federal jury has found that Microsoft has infringed on audio patents held by Alcatel-Lucent and should pay $1.52 billion in damages according to Bloomberg.

The report said that Alcatel-Lucent had accused the world's biggest software maker of infringing on patents related to standards used for playing computer music files and that the Microsoft used digital music technology without permission.

The San Diego jury said today that Microsoft infringed two Alcatel-Lucent patents with its Windows Media Player, including the version in the new Vista operating system. Microsoft pledged to challenge the verdict.

"Obviously we're very happy with the verdict", said Barbara Landmann, president of intellectual property and standards for Paris-based Alcatel-Lucent to Bloomberg.com. "We fight hard to protect our intellectual property and are glad the jury agreed with our argument."