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A jury has awarded Alcatel-Lucent $1.52 billion to be paid by Microsoft for use of digital music technology without permission. The jury found that Microsoft infringed on two Alcatel-Lucent patents with Microsoft Windows Media Player, including the version in the new Microsoft Windows Vista operating system (OS). The jury could not decide whether the infringement was willful, so that count was dismissed, but a ruling in favor of Alcatel-Lucent could have meant a tripled verdict. Microsoft will appeal, but the verdict permits Alcatel-Lucent, the largest maker of communications equipment in the world, to prevent Microsoft from using the patented technology. The victory for Alcatel-Lucent could also clear the path for legal actions against hundreds of companies that use MP3, which is the standard for playing music and sound files on a computer, mobile phone, or digital music player. Brian Ferguson, patent lawyer at McDermott Will & Emery in the state of Washington, was not involved in the case, but has said the verdict will be appealed as high as possible, and that he is interested in seeing if the royalty can withstand scrutiny. The damage award could be cut in half if Microsoft wins an unrelated case currently before the Supreme Court that could change the way patent damages are calculated for software companies with overseas sales.
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