Home / / Patent breach to cost Microsoft $338 million

Patent breach to cost Microsoft $338 million

US federal court orders tech giant to pay damages to Uniloc for infringing on security software patent

A US federal court has ordered Microsoft to pay $338 million in damages to antipiracy tool developer Uniloc for infringing on their software patent.

California-based Uniloc originally filed the suit against Microsoft in 2003, claiming that the world’s largest software manufacturer breached its patent for security software. The software generates unique identities for licensed users to prevent a single copy being installed on several machines.

Microsoft uses a similar ‘product activation’ system for its Windows operating system and Office tools.

The Rhode Island federal court jury has now found that Microsoft wilfully infringed the patent and ordered the company to pay a massive $338 million in damages to Uniloc USA and its Singapore-based parent.

"We believe that we do not infringe, that the patent is invalid and that this award of damages is legally and factually unsupported," said a Microsoft spokesman to Reuters. "We will ask the court to overturn the verdict."

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