Ruling threatens developers' wallets
In a move that could force fees on developers working with Microsoft's SQL Server software, a judge says Microsoft can't sublicense another firm's patents to SQL Server customers.
Seattle, Wash.-based Timeline is trumpeting an order released last week that confirms a 1999 licensing agreement between it and Redmond, Wash.-based Microsoft that bans sublicensing of Timeline's patents. The contract essentially prohibits third-party developers from creating customized technologies dependent on Timeline's patents without paying royalties. Microsoft had argued that it should be allowed to sublicense the technology to its customers.
Timeline's
Although he couldn't put an exact figure on it, Timeline CEO Charlie Osenbaugh said a "significant" number of companies and developers could be affected by the ruling.
"Any developer on SQL Server 7 should get an attorney to take a look at that patent" to make sure there's no infringement, Osenbaugh said. The company charges royalty fees for use of its technology that consist of either a one-time flat fee ranging from $250,000 to $5 million, or a continuing payments of 5 percent of the retail value of each sale of a product based on the patented technology.
Microsoft downplayed the impact of the order, which it said was crafted with the cooperation of both companies. Microsoft spokesman Jim Desler said companies that use SQL Server without adding customized code would already be covered by the licensing agreement and therefore would not be affected by last week's order. Desler said even companies that add their own customized code would not see an impact if their code is not related to Timeline's patents.
"Under the terms of the order, which were agreed upon by Timeline and Microsoft, even customers that add code could fall within the protection of the license between Timeline and Microsoft," Desler said.
The order stems from a
Last week, in possibly the final ruling in the case, a King County Superior Court judge ordered Microsoft to respect the terms of the contract, meaning that any partner adding certain code to SQL Server would have to honor the patents of Timeline.