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Latest Business News

Jury Orders Microsoft to Pay $1.52B

Friday, February 23, 2007 6:07:25 AM
By JESSICA MINTZ

 A pedestrian passes a sign at one of the entrances to Microsoft Corp.'s Redmond, Wash., campus in this 2004 file photo. Microsoft Corp. must pay $1.52 billion in damages to telecommunications equipment maker Alcatel-Lucent SA for violating two patents related to digital music, a federal jury ruled. (AP Photo/Ted S. Warren, FILE)SEATTLE (AP) - Microsoft Corp. must pay $1.52 billion in damages to telecommunications equipment maker Alcatel-Lucent SA for violating two patents related to digital music, a federal jury ruled Thursday.

The Redmond, Wash.-based software company said the patents in question govern the conversion of audio into the digital MP3 file format on personal computers.

In 2003, Lucent Technologies Inc., which last year was acquired by Alcatel, filed 15 patent claims against Gateway Inc. and Dell Inc. for technology developed by Bell Labs, its research arm. In April 2003, Microsoft added itself to the list of defendants, saying the patents were closely tied to its Windows operating system. The PC makers are still defendants.


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