The Eastern District of Texas has struck again and in denying post trial motions, awarded Patent Holder i4i Limited Partnership a judgment against Microsoft of $290 Million and more importantly, issued a permanent injunction against Microsoft prohibiting the future sale of Microsoft Word 2003 and 2007 if it contains the infringing elements (which it currently does). This is a blow to Microsoft not in terms of the relative pocket change to them of $290 Million, but in having to deal with the injunction. The court applied the four prong test set forth in eBay v. MercExchange and found that i4i proved all four factors for permanent injunction. Microsoft promises an appeal, but the court appears to have applied the correct law to the request for injunction and this might make it tough going for Microsoft. The court threw Microsoft a small bone when it set the injunction date out 60 days but Microsoft will need to either obtain a Federal Circuit stay of the injunction or do a quick design around or patch. Of course, Microsoft could always acquire the claimant i4i - for say $290 Million. The judge did not appear to believe that Microsoft was too big to enjoin, or that threatening the incredible pervasiveness of Word was a disservice to public policy. He found no such issue in prong four of the eBay test. There are numerous issues with which the Federal Circuit might find a problem on the merits of the ruling, but a jury spoke, a judge denied post trial motions and issued a permanent injunction. The written opinion is very strongly worded and strikes down every Microsoft argument. We will monitor for at least the next 60 days.
i4i v Microsoft Order.pdf (497.03 kb)