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Microsoft, Autodesk Fined $133 Million

By Ed Oswald, BetaNews

April 20, 2006, 12:00 PM

A Michigan man has won a $133 million judgment against Microsoft and Autodesk in a Texas court after a jury found the two companies guilty of patent infringement. Of the total judgment, Microsoft would be responsible for $115 million and Autodesk $18 million, the Redmond company said.

David Colvin is the founder of z4 Technologies, a privately held Michigan company that offers DRM and other solutions to stop piracy. Colvin accused the two companies of infringing on his patents surrounding anti-piracy technologies.

Colvin's patents were used in Microsoft's Office productivity suite and Windows XP operating system, as well as Autodesk's AutoCad software, the suit alleged.

Microsoft said that it was disappointed with the verdict and was awaiting the resolution of all issues surrounding z4's case before deciding whether it would appeal.

The court has yet to rule on Microsoft's accusation that z4 withheld information from the U.S. Patent and Trademark Office when applying for the patent in question. Microsoft contends that it was working on similar technologies long before z4's application for the patent was filed with the USPTO.

Neither Autodesk, Colvin, nor z4 have made any public comments regarding the case.

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By ds0934

posted Apr 24, 2006 - 9:42 AM

Posted on the US PTO web site home page...

Town Hall Meeting on Patent Claims and Continuation Practice
Alexandria, VA - April 25

A town hall meeting on the proposed rule changes for claims and continuations will be held April 25 in Alexandria, Virginia. The U.S. Patent and Trademark Office (USPTO) will host the event at the Madison auditorium at the USPTO, (600 Dulaney Street, Alexandria, Va). The meeting will be held from 2pm – 4pm.

Jay Lucas, Deputy Commissioner for Patent Examination Policy and James Toupin, the agency’s General Counsel, will provide a brief overview of the challenges the USPTO faces and the reasons why the proposed new rules are necessary. A panel of individuals with varying interests in the U.S. patent system has been invited to offer their views on the proposed rule changes. To stimulate the discussion, panel members also will answer questions posed by a USPTO moderator. A question and answer session will follow immediately after the panel presentation and then John Doll, Commissioner for Patents, will give closing remarks.

Registration is free and CLE credit may be available.

The town hall meetings are for patent attorneys, patent agents, independent inventors and members of the small business community, or anyone else interested in patent examination.

(note: If you dislike the current patent process, here's your chance to speak up and DIRECTLY to the parties involved)

Score: 0

By cranbers

posted Apr 22, 2006 - 3:09 AM

Damn! Some man is a millionaire overnight. This is what you call not doing your homework. Although im sure these companies made a few billion so paying some guy a few million was worth it. I seriously doubt their lawyers missed it, it was more like oh yeah some guy owns the patent if he notices, owell we will just pay him off. If he doesn't, sweet deal!

Score: 0

By ds0934

posted Apr 22, 2006 - 5:35 PM

You missed the point. Homework in the sense I meant is regarding the legal aspects. I deal with the legal aspects, it's my job. I don't post comments on medical web sites, because I don't have any experience in that area. Posting legal topics on software/computer oriented web sites makes about as much sense as posting medical questions on an automotive web site. The comments are ill-informed, misleading and inaccurate. Mostly due to emotional responses derived from second-hand news headlines that distort the truth to draw attention and sell ads. Oh well. It is fun I must admit. :)

Score: 0

By ds0934

posted Apr 21, 2006 - 7:10 PM

Please. I beg you. Whenever posting comments about legal matters, DO YOUR HOMEWORK. So many comments are so incredibly off base and inaccurate, no wonder we still need lawyers. They exist because most non-lawyers don't take the time to open a book or search for their own answers.

Score: 0

By VikingBlade

edited Apr 20, 2006 - 6:52 PM

I'm guessing all the people saying MS should pay more obviously haven't read what the patents actually cover.

"(From /.)6044471
This one deals with a system where you provide information to the company and are given a code. When you install the software you are required to enter the code or series of codes and it checks with the companies databases and veries that the password and other info is correct. There are clauses in it to deal with multiple passwords, and shutting down software that has incorrectly entered password.
6785825
This is kind of like the first but instead you are provided a key with the software which provided use for a limited time. Then during that time you are required to call the registration company and provide information and you receive an additional code which then unlocks the software for future use. "

The patent was filed in 2003. How on earth this patent became valid with so much prior art is beyond me.

Score: 0

By ds0934

posted Apr 21, 2006 - 7:23 PM

Good catch. Finally, someone reads the details instead of the headlines. (thank you)

Score: 0

By fewt

posted Apr 21, 2006 - 6:50 PM

Who cares, they hold the patents. Microsoft would do it to them in a New York minute.

Believe it!

Score: 0

By Joe Dirt

posted Apr 20, 2006 - 4:44 PM

Hahahahahahahaha.

LOL. This is great.

Ha Ha Microsoft! :D

Score: 0

By xyzcb1

posted Apr 20, 2006 - 4:01 PM

I am so sick and tried of reading news on these patent trolls. All they do is file a patent and then sit on their a$$. And one day someone make a great product(s) and somehow the patent's troll's patent is cover part of the technology and they sue. The patent system MUST reform.

Score: 0

By eunichman

posted Apr 21, 2006 - 2:43 AM

why is it when MS sues someone for patent infringement that it's ok?

why is it when MS is found guilty of patent infringement is it not ok to ask them to stop and if they dont - to sue them?

dudes and dudettes, I kid you not. I am so so SOOOO tired about people whining when someone sues MS or anyone else for that matter for what amounts to theft of property and wins. Hey, you steal someones technology and get busted, then IMO sueing for monetary amounts is never enough. People like Bill gates Sh*t money. I say hit him where it hurts.. sue him for HIS shares in the company AND make him serve time in a regular prison like everyone else who's been found guilty of piracy (theft of software).. and not some cushy country club jail either.. thge same prisons he and others like him are always sending people.

Score: 0

By Joe Dirt

posted Apr 20, 2006 - 4:45 PM

That's because you have never invented anything.

There is nothing wrong with the current patent system. My father has 3 patents and he's making money from them as I type this.

Score: 0

By GoodThings2Life

posted Apr 20, 2006 - 11:29 PM

If he has a product or service that accompanies those patents, then more power to him. Otherwise, he's just as abusive as these other Dirt bags...

Score: 0

By eunichman

posted Apr 21, 2006 - 2:44 AM

why is he a dirtbag foir making money off his patents? he patented something and is making money off licensing the right to use those patents to others. That's free enterprise

Score: 0

By The Man

edited Apr 21, 2006 - 10:49 AM

in real life, we usually have to do something to get paid.

wait till someone comes out with the cure to cancer AND PATENTS IT!

free enterprise, what a joke.

won't be long before the patent system crumbles, then it will be up to marketing, and quality, and customer service to sell a product, not patent licensing.

Score: 0

By ds0934

posted Apr 21, 2006 - 7:16 PM

In the EU they have laws to prevent that from occurring. In the US, we have the "takings clause", which allows the federal govt to seize intellectual property holdings for the sake of national security, public safety or common good. Good-faith compensation is to be paid to the former holder, but after it has been taken. This prevents anyone from hording a patent that causes injury or death to others as a direct result.

The U.S. patent system is fine. Everyone reads bogus headlines and forms false opinions about things without researching it themselves. Be honest: Have you ever actually read an entire section of the patent laws? Most have not. I know other attorneys that haven't, at least not until they HAVE to.

The problems with the patent system per se is not with the system itself, but in how it is legislated and litigated in the courts. Bad judges turn good laws into bad findings. So do bad juries. Everyone thinks there's some simple fix to everything. Life is not that simple. For every law we have there is some situation in which it disenfranchises or inconveniences someone else. The laws are written and revised to suit the largest sector of the population. It works. And when it doesn't work well enough, we vote to make changes. It's called Democracy.

Score: 0

By gbsteveg

edited Apr 20, 2006 - 3:02 PM

Last week it was ActiveX... This week it's Office and XP...

Do they have a product that they actually developed on their own?

When is the computing world going to wake up a see Microsoft for what it really is? The only way they can get any product to market is by stealing it...

Jail for a few week is not nearly enough... $133M is not nearly enough... stop using their crap products and put them out of business.

Score: 0

By GoodThings2Life

posted Apr 20, 2006 - 11:32 PM

Your comments are nothing more than anti-Microsoft trolling.

The real issue is people filing patents that should never have been approved and then sitting on them rather than demonstrating they had merit.

I find it hypocritical to accuse a "business" of being greedy and corrupt when individuals do such a good job of it without a company.

Score: 0

By rijp

posted Apr 20, 2006 - 3:18 PM

You are over stating the matter. Each of those products MS developed, components they used in each of those products, were in jeopardy, not the whole product. Office , ActiveX were designed by Microsoft, but they have certain components that they used that were copyrighted.

This is a common practice among businesses, why reinvent the wheel? This isn't a MS problem, its a business problem. Probably a clerical error, how do you know it wasn't a simply oversight? They have hundreds, perhaps thousands of products. Maybe some derelict like you, forget to submit some paperwork, did you ever think of that?

It only takes one person to make the company accountable.

Score: 0

By gbsteveg

posted Apr 20, 2006 - 4:48 PM

Do you work for MS?

I'm overstating the matter! Do you realize how big the ActiveX thing is? Windows Explorer, Internet Explorer, Windows MediaPlayer, Flash, Adobe PDF Reader, Apple QuickTime... have you ever heard of these things? They broke the whole web!

How many people use XP or Office? How many should? How many are forced to by their narrow-minded, need-to-make-sure-their-certifications-are-relavant IT people?

"Common business practice" is to steal other companies products and hope you don't get caught. How many times have they been busted for this stuff? How many times do they appeal and appeal until the matter is irrelevant? How many of their "perhaps thousand products" did they actually make? How many did they steal? How many did they acquire another company because they couldn't compete with them?

Also, please describe how I'm a derelict? DONKEY!

One person might work... but if everyone simply stopped supporting this company and it's tactics, they'd just go away...

Score: 0

By fewt

posted Apr 20, 2006 - 2:32 PM

Hmm yet another guilty, when will it end?

$133M is obviously not enough, they make more than that a week for crying out loud.

You won't get a criminal to behave by constantly slapping them on their wrists, you really need to send the message home.

Put Balmer in jail for a few weeks next time.

Score: 0

By GoodThings2Life

posted Apr 20, 2006 - 11:34 PM

It ends when people learn how to actually file a valid patent that has merit that they work hard to produce-- either a product or service. Rather than just sitting on it and doing nothing... or worse, filing one that isn't even deserved.

Score: 0

By fewt

posted Apr 21, 2006 - 6:51 PM

It won't happen until there is patent reform.

Remember Microsoft is one of the companies that lobbied for all of these draconian laws.

Now, TFB for them.

Score: 0

By rijp

posted Apr 20, 2006 - 4:10 PM

Oh that's brilliant!

Steve Balmer is to be in trouble for some employee? I suppose your company never makes mistakes, so when you do wrong, you want the CEO to take the heat for it?

Are you stupid?

Score: 0

By M.Sweazey

posted Apr 21, 2006 - 2:28 AM

Become familiar with Sarbanes-Oxley...

Score: 0

By fewt

edited Apr 21, 2006 - 6:52 PM

EXACTLY, why in the world didn't I think to mention Sarbanes?!

Ahh well.

Score: 0

By fewt

edited Apr 20, 2006 - 6:08 PM

How do you know it was some employee? Do you work there?

STFU idiot, you know what corporate attorneys are for right? Their role (in part) is to prevent things like this from happening. They obviously aren't doing their jobs.

Ethics awareness programs, also something that would help prevent things like this from happening and something Microsoft OBVIOUSLY doesn't have.

As for Balmer being in trouble, why don't you go check into the CEOs of companies like Worldcom, Tyco, and Enron.

MY company has many programs to ensure that employees follow very high ethical standards. Most large companies do actually.

Go back to your hole.

Score: 0

By AlanRivaldo

posted Apr 20, 2006 - 4:33 PM

Hell yeah! Because when I do right and make the company a fortune, I still get the same paycheck. Meanwhile, Mister Bigwig gets a few more million dollars for a bonus. Oh, and don't forget the stock options!

Score: 0

By bourgeoisdude

edited Apr 20, 2006 - 1:30 PM

"Microsoft contends that it was working on similar technologies long before z4's application for the patent was filed with the USPTO."

What is AutoDesk's excuse, then? One-sided reporting--man, I'm so tired of politics.

Soon there'll be Computer Technology Republican Party and Computer Technology Democratic Party, mark my words ;)

Score: 0

By ds0934

posted Apr 21, 2006 - 7:21 PM

Ignore headlines. Focus on what the courts do. That's all that really matters. The rest is blowing wind and selling ad space.

Score: 0

By GoodThings2Life

posted Apr 20, 2006 - 11:37 PM

Indeed, and good call!

Ed and Nate-- with all due respect and then some, I think you guys should go back to reporting about Beta Products, rather than general tech news and political tech spin. Please don't take offense at that.

Score: 0

By blazo

posted Apr 20, 2006 - 6:20 PM

Right ON bourgeoisdude! The politics attached to the governance of the USA will fall into the hands of those who are the IT elite. Case-in-point: Chinese leader meets with Bill Gates and Boeing and Starbucks dudes THEN schlepps to DC to see "W". 1st on agenda is most important.......

Score: 0

By rijp

posted Apr 20, 2006 - 12:46 PM

Personally, its a patent, if MS did in fact have technlogies before Z4, then why didn't they have a patent pending? Even if it wasn't their product, and then the patent was established, work in progess does not matter, you are in violation of a patent.

If I were to build a computer, and you had a chip similar to my process, and I patented it, you would be guilty of copyright, because I founded and patented the process that you are NOW using. Even if at the time you produced 50 chips, those 50 chips need to be settled, because its MY technology, you owe me for previous processes. That's how it works.

Just because you were in progress on something, doesn't absolve you from wrong doing. Otherwise, everyone could just say "That was a process we were working on.... before it was patented". Too bad.

Pay the fine, move on.

Score: 0

By The Man

edited Apr 21, 2006 - 10:46 AM

it's not a chip, it's a process of transfering info.
it should not be able to hold a patent!
quick, patent burning data to a cd before anyone else does. you know, the process of taking a cd out of the case, placing it in the tray, and hitting the record button. it's an art!

Score: 0

By klingon379

posted Apr 21, 2006 - 2:14 AM

Two words: Prior Art

Score: 0

By dhjdhj

posted Apr 20, 2006 - 3:23 PM

"Patent pending" has absolutely no legal meaning. It's essentially only useful for marketing purposes.

Score: 0

By ds0934

edited Apr 24, 2006 - 10:32 AM

In and of itself, the term "patent pending" offers no direct legal protection. In that sense you are correct. However, many cases have been decided based upon a legitimate public use of the term in marketing as it supports a timeline for public inception. By itself, no legal protection. However, it can help later if infringement or theft is claimed against you, but only if it is used legitimately (ie. after you have officially filed for the patent in question)

Score: 0

By bourgeoisdude

edited Apr 20, 2006 - 1:26 PM

Points valid. Also, this is exactly the *kind* of thing Microsoft has done to get to the top. Remember that DOS didnt always have the MS in front of it...Microsoft fell victim to one of their own games. Funny they didn't see it coming, eh?

Still, $133 million is outrageous. The point of these lawsuits is primarily to fix the damage that was caused by the defendant, and I can't see that it has cost z4 technologies one tenth that amount in damage. Patents rule in this case *sigh* Patent reform, people...

Score: 0

By rijp

posted Apr 20, 2006 - 1:41 PM

Actually, since the sums of many lawsuits are exceeding hundreds of millions anyway, I didn't even pay attention to the amount. Its become blaise.. isn't that sad?

133 million, yeah good tidy sum, but you are right, it is outrageous.. I was consumed with the problem of why anyone didn't file a patent and didn't even consider the sum at hand..

Score: 0

By fewt

posted Apr 20, 2006 - 2:34 PM

All these lawsuits don't even put a dent in their profits.

They will continue to break the law because it's cost effective for them.

Score: 0

By bourgeoisdude

posted Apr 20, 2006 - 5:09 PM

"All these lawsuits don't even put a dent in their profits.

They will continue to break the law because it's cost effective for them."

It isn't about detering the defendant from repeating the crime--it's about compensating z4 for the damages that Microsoft caused them.

Score: 0

By fewt

posted Apr 20, 2006 - 6:06 PM

Sure, but if you don't make it hurt then what's to stop it from happening again (and again and again in MSFT's case)?

Score: 0

By rijp

posted Apr 20, 2006 - 4:11 PM

wow, outlandish rhetoric with poor attitude at its best.

So you believe companies are just doing things like this, because they can get away with it.

Are you cynical or what?

Score: 0

By fewt

posted Apr 20, 2006 - 6:07 PM

No, I believe that THIS company is doing this just because they can get away with it.

They have the track record to prove it.

Just ask the dead people that sent their support for Microsoft to not be broken up a few years back.

Score: 0

By bourgeoisdude

edited Apr 21, 2006 - 4:00 PM

I think I'll let you do the talking with dead people, fewt. I'd rather not get involved ;)

Score: 0

By fewt

posted Apr 21, 2006 - 6:01 PM

LOL

Score: 0

By M.Sweazey

edited May 12, 2006 - 5:04 AM

Score: 0

By rijp

posted Apr 20, 2006 - 1:20 PM

If you are confused, perhaps you should research it yourself.

MS doesn't have enough lawyers, you can't have enough lawyers, because any dimwit with a grudge, can file a suit. That still doesn't answer my other valid question, which is, if they had the idea BEFORE the other company, they could have simply had a patent pending.

filing a patent has nothing to do with laywers anyway, if its a valid idea, you simply fill out the paper work with the patent office, but by their own admission, at least according to article, I don't where they even ATTEMPTED a patent.

confusing or not, MS is trying to find an end around to a judgement against them. chances are, MS didn't make the statement, their Lawyers are speaking on their behalf.

Obviously they lost the case, so they need to pay the fine and move on.

Score: 0

By M.Sweazey

edited May 12, 2006 - 5:04 AM

Score: 0

By rijp

posted Apr 20, 2006 - 1:43 PM

I am not confused, your parlay is poorly communicated. Therefore, you didn't properly convey your agreement, especially when I don't see the words "I agree with you, but..."

The suggested post therefore takes an entirely different tone.

Sorry for your incoherent blather that I dismissed as some baseless post.

I am not confused, the reader is never confused. The Author needs to learn better communication.

Score: 0

By M.Sweazey

edited May 12, 2006 - 5:04 AM

Score: 0

By rijp

posted Apr 20, 2006 - 4:12 PM

Good. Now maybe you will quit with the commentary.

Score: 0

By davidtb

posted Apr 20, 2006 - 12:31 PM

Hehehe.. those pesky patients will get you every time.

Score: 0

By rijp

posted Apr 20, 2006 - 12:42 PM

Dude, switch to near beer, you are drooling again..

Its "patents" not patients...

Score: 0

By M.Sweazey

edited May 12, 2006 - 5:05 AM

Score: 0

By rijp

posted Apr 20, 2006 - 1:21 PM

Both of you need rehab..

Patients isn't the same as Patience...

Score: 0

By M.Sweazey

edited May 12, 2006 - 5:05 AM

Score: 0

By canv15

posted Apr 20, 2006 - 1:44 PM

all that crap for something that doesnt even work.

Score: 0

By rijp

posted Apr 20, 2006 - 4:12 PM

Or make sense . . .

Score: 0

By M.Sweazey

edited May 12, 2006 - 5:05 AM

Score: 0

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