Microsoft, Alcatel-Lucent settle long-running patent fight

The companies ask judge to end the case, two months after she ordered Microsoft to pay $26.3 million, for infringing on patents in Outlook and two other products.

Microsoft and Alcatel-Lucent have settled their nearly 9-year-old patent dispute, two months after a federal judge ordered Microsoft to pay $26.3 million in damages to the telecommunications infrastructure company.

Yesterday, the companies asked U.S. District Judge Marilyn Huff in San Diego to grant a joint motion ending all claims in the suit. A Bloomberg article notes that both sides agreed to bear their own costs, according to a court filing. No details were given about settlement terms.

"Microsoft and Lucent have entered into a confidential settlement to the satisfaction of both parties," a Microsoft spokeswoman said.

The patent, originally applied for by engineers at AT&T, from which Lucent sprung, covers a method of entering information into fields on a computer screen without using a keyboard. In 2002, Lucent, since merged with Alcatel, sued PC makers Gateway and Dell for infringement, and Microsoft intervened.

A jury ruled that Microsoft infringed on the patents in its Outlook e-mail software, Windows Mobile, and Microsoft Money programs. In 2009, a federal appeals court affirmed the lower court ruling, but said the jury award of $358 million in damages was excessive . That led to the new trial and a $70 million damage award that Huff reduced to $26.3 million in November.

Featured Video
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

As Xbox One gets a little sweeter, HoloLens gets Xbox Live

Microsoft announces new features coming to Xbox One, including the ability to record TV shows. Also, the company opens up Xbox Live to HoloLens programmers.

by Bridget Carey