i4i Ltd, a Canadian firm, had filed a lawsuit against Microsoft, alleging violation of a patent related to Extensible Markup Language (XML) held by it.
In a ruling on Aug. 11, a federal district court in Texas has fined Microsoft $290 million and ordered the software giant to stop selling some versions of its extremely popular Word software, which use XML, in the United States in 60 days.
Overturning the ban, the court said, “Without prejudicing the ultimate determination of this case by the merits panel, the court determines based upon the motion papers submitted that Microsoft has met its burden to obtain a stay of the injunction.”
Microsoft’s appeal against patent infringement ruling
Microsoft had filed a motion to stay the order on Aug.18. In its formal appeal, the company had warned of massive disruption to its sales as the injunction would remove its product from the market for months.
Further, Microsoft said i4i will not be affected if the injunction was stayed but the consumers will face hardship if Word and Office are removed from the market for any period.
On being granted the stay on the ruling, Microsoft spokesman Kevin Kutz in an e-mail, “We are happy with the result and look forward to presenting our arguments on the main issues on Sept. 23.
Despite the stay granted to Microsoft, i4i is confident that the Court of Appeals will rule in its favor. “Microsoft’s scare tactics about the consequences of the injunction cannot shield it from the imminent review of the case by the Federal Circuit,” i4i’s chairman Loudon Owen said in a statement.
Microsoft to emerge a winner
Word, which is a part of Microsoft office, is used by millions of consumers worldwide for everyday works like word processing, preparing spreadsheets, presentations etc.
Though some analysts have predicted that the ruling against Microsoft could adversely impact sales, Andrew Updegrove, co-founder of Boston-based technology law firm Gesmer Updegrove LLC, believes that judgment will not hurt the software giant.
“I'll wager you that no one will have any more trouble buying Office the day after the 60 day pendancy period runs out than they did before," Updegrove wrote in his blog. "That's because the key to the solution is also all about money, calculated under three alternate paths."
The three paths for Microsoft are: out of court settlement with i4i, continuing the sale of Office and Word despite the ban or retooling Word. Whichever path Microsoft takes, it will emerge as a winner, stated Updegrove.
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