Microsoft $1.5bn fine for MP3 patent infringement dropped

August 8, 2007 – A US District Court has overturned a decision to fine Microsoft $1.5bn for infringing an MP3 patent held by Alcatel-Lucent.

The federal judge in San Diego reversed a jury’s decision which ruled that two Alcatel-Lucent patents concerning the conversion of audio to MP3 files had been infringed by Microsoft’s Media Player software.  Microsoft stated that the reversal was a “victory for consumers.”  Judge Rudi Brewster ruled that as Microsoft had already paid German firm Fraunhofer $16mn to use one of the patents concerned, the software giant had not broken patent rules.

“A spokesperson for Alcatel-lucent said: “This reversal of the judge’s own pre-trial and post-trial rulings is shocking and disturbing”, and the French firm plans to appeal within the next 30 days.  The case is one of six brought by Alcatel-Lucent against computer firms, including Dell and Gateway, to be held in the San Diego court.