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| Version 1 | Version 2 |
|---|---|
| Microsoft $1.5bn MP3 fine dropped | Microsoft $1.5bn MP3 fine dropped |
| (about 3 hours later) | |
| A US district court has overturned a decision ordering Microsoft to pay phone firm Alcatel-Lucent $1.52bn (£777m) for infringing music patents. | |
| The federal judge in San Diego reversed a jury's decision which had ruled that Microsoft's Media Player software infringed on two Alcatel patents. | The federal judge in San Diego reversed a jury's decision which had ruled that Microsoft's Media Player software infringed on two Alcatel patents. |
| Both patents regarded how audio was converted into MP3 files. | Both patents regarded how audio was converted into MP3 files. |
| Alcatel said it would appeal against the decision while Microsoft said the reversal was a "victory for consumers". | Alcatel said it would appeal against the decision while Microsoft said the reversal was a "victory for consumers". |
| 'Shocking' | 'Shocking' |
| Mary Lou Ambrus, a spokesperson for Alcatel-Lucent, said: "This reversal of the judge's own pre-trial and post-trial rulings is shocking and disturbing." | Mary Lou Ambrus, a spokesperson for Alcatel-Lucent, said: "This reversal of the judge's own pre-trial and post-trial rulings is shocking and disturbing." |
| Judge Rudi Brewster ruled that Microsoft had not breached patent laws because Microsoft had already paid German firm Fraunhofer $16m to use one of the patents in question. | |
| Given that Fraunhofer had not sued, Microsoft was not deemed to have broken any laws, the judge decided. | |
| In reversing the decision, the judge also rejected the argument given to justify the fine - that it amounted to 0.5% of Microsoft's global personal computer sales since 2003. | |
| If the French firm were successful in challenging the ruling, he would give them a new trial, but he would not reinstate the original $1.5bn fine. | |
| There had been fears that if Microsoft had lost the Alcatel-Lucent case, many other firms that license technology would also be sued. | There had been fears that if Microsoft had lost the Alcatel-Lucent case, many other firms that license technology would also be sued. |
| The case in the San Diego court is just one of six cases brought by Alcatel-Lucent that the court is set to hear. | |
| They are all against computer firms and include Dell and Gateway. |