Microsoft Owes $1.5 Billion to MP3 Patent Holder

There’s a few big news items today (which I’m sure you’ve already read about on other sites), but the one I want to cover involves Microsoft losing a $1.5 BILLION patent lawsuit.

Alcatel-Lucent sued Microsoft over its use of the MP3 technology in Windows. Microsoft says it already paid a $16 million licensing fee to another company later bought by Alcatel-Lucent. Clearly, something went wrong. I have to wonder if this has any effect on other companies that use MP3 compression technologies (Apple). From what I gather, yes.

The company also noted that roughly half of the damages are for overseas sales of Windows, which could be affected by a separate patent case. That case, currently before the Supreme Court, deals with whether overseas sales of software products should be subject to U.S. patent law.

Should you feel sorry for Microsoft? Well, considering their net income ("profit") for 2006 was $12.6 billion — no. They can more than afford it.