Microsoft Scandal

A legal precedent has been set. Judge Leonard Davis wants to deprive the Americans of the most useful writing tool on the market. Another ridiculous judgment has been rendered in Taylor Texas against Microsoft, making it illegal for them to sell Word using modified XML. i4i, owner of an American patent for customized XML. The customized XML is used for the formatting of documents using Word 2003 and 2007. I can understand financial compensation, but to deprive Americans from selling the software will not only create a loss in revenue to Microsoft but would have a grave impact on its distributors, no to mention students and and office workers.

Here is the issue

"The 2003 and 2007 versions of Word allow users to open up and customize XML documents. Most Word users will probably never use this tool." (Microsoft Blog) By adding this feature, Microsoft blatantly ripped off of Toronto-based i4i, which argues that it has a patent covering the technology. So i4i did its homework, and filed a lawsuit against Microsoft in Taylor, Texas, the patent capital for lawsuits in which the little guy always wins.

"In May a jury found Microsoft guilty. Microsoft was ordered to pay $200 million to i4i, but the judge this week upped that amount to $290 million." (Microsoft Blog) If the judgment is upheld after the appeal, Microsoft will be banned from selling their product in the United States. It is of my opinion that $290 million should cover i4i's legal property of the customized XML application and that Microsoft should be allowed to continue providing Americans with a quality text-editing software. So Microsoft got caught with its hand in the cookie jar. I say make them pay but don’t bring hardship on its distributors and users.

"That amount, in part, was reached by determining that a reasonable royalty for the XML feature was $98 per copy of Word, a figure that Microsoft noted in Tuesday's court filing is more than the retail price of some editions of Word." (CNET)

"Microsoft shouldn't have a problem paying at the end of June its balance sheet listed cash and cash equivalents of US$6.076-billion and short-term investments of US$25.371-billion. But if it can't pay, then it has to tell i4i within seven days. Under that stipulated order, Microsoft is also required to pay within 15 days once 'all appeals and remand proceedings' have been completed. Microsoft could not be reached for comments." (National Post)


The bottom line

"Few are convinced that i4i's claim and the recent ruling will hold up over time. PC World, for example, points out five reasons why Word will survive this patent challenge: i4i's patent is vague, Microsoft owns a patent awarded earlier this year that covers Word's use of XML, Microsoft has deep pockets and could settle the matter, Microsoft could buy i4i (and its portfolio of patents), or an appeals court could decide that Word is too important to consumers and businesses worldwide to be shut down by a lawsuit.

"Microsoft says it will appeal the verdict. 'We are disappointed by the court's ruling', Microsoft spokesman Kevin Kutz said in a statement. 'We believe the evidence clearly demonstrated that we do not infringe upon the rights of i4i.'" (Scientific American)

Please note: I used Word to write this post!


XML and customized XML(i4i)

• XML stands for Extensible Markup Language
• Type of structural information within an electronic document
• It was conceptualized primarily to design and transport data
• XML tags are not predefined, you must define your own tags.

"The customized XML protected by the 449 patent of i4i created a reliable method of processing and storing content and metacodes separately and distinctly. The data structure primarily responsible for this separation is called a metacode map. According to the patent, the metacode map allows a computer to manipulate the structure of a document without reference to the content." (Toptech News)


References

Microsoft Blog

National Post

Scientific America

CNET

Toptech News