i4i and Microsoft
http://www.nationalpost.com/opinion/...f-548207c028ac
Microsoft scrambling after i4i court win
The case of David versus Goliath -- known locally as i4i Inc. versus Microsoft Corp. -- continues to get weirder.
This week, one week after a U. S. District Court in Texas found Microsoft guilty of patent infringement, issued a permanent injunction, gave Microsoft 60 days to fix the problem and, for good measure, imposed a US$290-million fine, Microsoft filed court documents of its own.
They were an unopposed motion to enter stipulation as order; a so-called stipulated order on execution of judgment against Microsoft, in which the two parties agreed that, while Microsoft would not be required to post a bond, it would be required to tell i4i "on a quarterly basis confirming Microsoft's continuing ability to satisfy the Judgment in this matter."
While Microsoft shouldn't have a problem -- at the end of June its balance sheet listed cash and cash equivalents of US$6.076-billion and short-term investments of US$25.371-billion -- it's hardly a normal situation. But if it can't pay, then it has to tell i4i within seven days. Under that stipulated order, an order that i4i agreed with, Microsoft is also required to pay within 15 days once "all appeal and remand proceedings" have been completed.
A third filing is even more noteworthy and provides an indication of how ill-prepared Microsoft was for the possibility it could lose the patent infringement. And it had lots of time, given that i4i filed its claim in March 2007.
Some would call its approach arrogant; others would call it smacking of hubris. Whatever the assessment, Microsoft doesn't have a Plan B. Microsoft couldn't be reached for comment.
Microsoft has filed an emergency motion to stay the permanent injunction pending an appeal. In a 31-page filing made in the U. S. Court of Appeals for the Federal Circuit, which sits in Washington, Microsoft asked for relief and said the injunction "is predicated on several fundamental legal errors."
In that filing, Microsoft gives some indication of what's at stake in complying with the permanent injunction. "That injunction gives Microsoft 60 days from Aug. 11, 2009, to redesign its flagship Word software ... and to push the redesigned versions of Word through all of its distribution channels," said the motion. And for good measure:
"Unless Microsoft can find a way to accomplish these tasks in 60 days, absent a stay from this Court, on Oct. 10, 2009, Microsoft will be compelled to stop distributing Word and the popular Office software suite.... in the U. S. market until it is able to distribute the redesigned versions of Word and Office."
Microsoft uses four arguments to support its request: It is likely to succeed on the merits of its appeal; it will be "irreparably" injured by an injunction that has the potential to remove its flagship product from the market for months; on the other hand, i4i will not be injured by a stay pending appeal, and the public "will face hardship if the ubiquitous Word and Office software is absent from the market for any period."
Microsoft's lawyers aren't the only people who are doing well at Microsoft's expense. Late-night television hosts are also getting a few laughs at the mess Microsoft finds itself in with skits and jokes at the company's expense.
Microsoft scrambling after i4i court win
The case of David versus Goliath -- known locally as i4i Inc. versus Microsoft Corp. -- continues to get weirder.
This week, one week after a U. S. District Court in Texas found Microsoft guilty of patent infringement, issued a permanent injunction, gave Microsoft 60 days to fix the problem and, for good measure, imposed a US$290-million fine, Microsoft filed court documents of its own.
They were an unopposed motion to enter stipulation as order; a so-called stipulated order on execution of judgment against Microsoft, in which the two parties agreed that, while Microsoft would not be required to post a bond, it would be required to tell i4i "on a quarterly basis confirming Microsoft's continuing ability to satisfy the Judgment in this matter."
While Microsoft shouldn't have a problem -- at the end of June its balance sheet listed cash and cash equivalents of US$6.076-billion and short-term investments of US$25.371-billion -- it's hardly a normal situation. But if it can't pay, then it has to tell i4i within seven days. Under that stipulated order, an order that i4i agreed with, Microsoft is also required to pay within 15 days once "all appeal and remand proceedings" have been completed.
A third filing is even more noteworthy and provides an indication of how ill-prepared Microsoft was for the possibility it could lose the patent infringement. And it had lots of time, given that i4i filed its claim in March 2007.
Some would call its approach arrogant; others would call it smacking of hubris. Whatever the assessment, Microsoft doesn't have a Plan B. Microsoft couldn't be reached for comment.
Microsoft has filed an emergency motion to stay the permanent injunction pending an appeal. In a 31-page filing made in the U. S. Court of Appeals for the Federal Circuit, which sits in Washington, Microsoft asked for relief and said the injunction "is predicated on several fundamental legal errors."
In that filing, Microsoft gives some indication of what's at stake in complying with the permanent injunction. "That injunction gives Microsoft 60 days from Aug. 11, 2009, to redesign its flagship Word software ... and to push the redesigned versions of Word through all of its distribution channels," said the motion. And for good measure:
"Unless Microsoft can find a way to accomplish these tasks in 60 days, absent a stay from this Court, on Oct. 10, 2009, Microsoft will be compelled to stop distributing Word and the popular Office software suite.... in the U. S. market until it is able to distribute the redesigned versions of Word and Office."
Microsoft uses four arguments to support its request: It is likely to succeed on the merits of its appeal; it will be "irreparably" injured by an injunction that has the potential to remove its flagship product from the market for months; on the other hand, i4i will not be injured by a stay pending appeal, and the public "will face hardship if the ubiquitous Word and Office software is absent from the market for any period."
Microsoft's lawyers aren't the only people who are doing well at Microsoft's expense. Late-night television hosts are also getting a few laughs at the mess Microsoft finds itself in with skits and jokes at the company's expense.