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Friday, August 28, 2009

Microsoft Gets H-P, Dell's Support in Word Patent Case

By Kathryn Glass

FOXBusiness

After a federal jury ruled that Microsoft Word, Microsoft’s (MSFT) high-revenue producing word processing software, violates a patent held by Toronto tech firm i4i Inc., the Redmond, Wash.-based technology giant is in danger of seeing sales of the software halted.

Microsoft filed an appeal after a federal judge ruled Tuesday that the company could not sell 2003 or 2007 versions of Word. The ruling does not require the revocation of the software from existing customers, but Microsoft is also expected to pay i4i Inc. damages of $290 million, according to a report in The Wall Street Journal.

Microsoft requested the court stay the injunction issued, which would halt sales of the software, until an appeal can be heard. The company garnered the support of fellow tech companies Hewlett-Packard (HPQ) and Dell (DELL), who each filed briefs arguing that their businesses would be adversely impacted.

“Dell urges the Court to consider the serious adverse impact of an injunction of Word on Dell, other PC sellers, and the PC-using public in evaluating whether the injunction should stand,” Dell said in its brief.

H-P’s brief in favor of a stay also cited the adverse impact the injunction would have on its business, and on the customer.

Shares of Microsoft were trading slightly higher on Friday afternoon, up about 7 cents, or 0.3%, at $24.76 per share.

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