Patent infringement per stock77investor....01/2010
Re: stock77inve... 4-Jan-10 02:33 pm
VHC's patent-infringement case against MSFT involves the majority of MSFT's core products, including its Windows operating systems. (Windows XP, Windows Vista, Windows Server 2003 & 2008, Office Communicator and Office Communications Server). VHC's patents are deeply embedded in MSFT's core products and involve over $300 billion in products already sold by MSFT - - - this means well over $6 billion in damages and will also (in future litigation) also involve MSFT's new Windows 7 operating system released in October of 2009.
Notably, Window's Automatic Updates, Windows Updates Downloader (WUD, or secure one-click updating (depending on what you have turned on) is one easy-to understand example of MSFT's infringement. Windows Update is a service provided by Microsoft that provides updates for the Microsoft Windows operating system and its installed components, including Internet Explorer. WUD allows you to download all of the current Windows Updates using a simple secure interface. MSFT's WUD is an absolutely essential feature to its operating systems and software. Thus unlike the recent i4i patent-infringement suit lost by MSFT, MSFT will not be capable of re-engineering around this secure interface.
The stakes are just too high in this case for MSFT to risk placing its future in the hands of 12 jurors in a box it knows virtually nothing about. Talk about a gamble of spinning the wheel....jury trials are umpredictable forums. And, unlike other patent cases MSFT has encountered, this case by VHC is the only one MSFT has ever faced where not only are all of its core (and future...Windows 7) at issue, but also at issue are potential damages exposure of $6+ billion (the damages figure increases if willful violations are shown, which makes MSFT's potential exposure in the $12+ billion). While some may laugh, this is in fact the case.
Even behemoth Microsoft cannot take that kind of risk. MSFT has about $30 billion in cash. Think its really gonna risk it all going to trial in the same venue, before the very same Judge, the the very same law firm (McKool Smith) that just successfully whipped it soundly for $290+ million plus an injunction to stop selling Microsoft Word or stop infringing by January 11, 2009???
I think not.