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Microsoft Hit With $388 Million Piracy Patent Charge

Next news
8:41 AM - April 9, 2009 by Jane McEntegart

Microsoft has been ordered to pay hundreds of millions of dollars to software company Uniloc Inc, which specializes in the protection of infrastructure as well as software and games.

A jury in Providence, Rhode Island, deliberated for over a day before delivering the $388 million that will see the end of a six year long case. Filed in October 2003, Uniloc targeted Windows XP as well as a number of Office programs. The company claimed that Mircosoft had infringed on a patent registered to Uniloc that generates unique identities for licensed users and prevents unauthorized use or pirating programs.

According to Bloomberg, Microsoft argued that it used a different method for registering software and that Uniloc’s patent was obvious. “We are very disappointed in the jury verdict,” David Bowermaster, a Microsoft spokesman told Bloomberg in an email. “We believe that we do not infringe, that the patent is invalid and that this award of damages is legally and factually unsupported. We will ask the court to overturn the verdict.”

That said, while Microsoft is clearly unhappy with the ruling, the worst could still be ahead of them. Bloomberg reports that because the jurors found Microsoft’s infringement to be willful, or intentional, the judge could increase the amount of damages by as much as three times. Yikes.

According to Uniloc's site the patent on the "System for Software Registration" was filed in 1993 and issued in 1996. Uniloc describes the system as follows:

"The system relies on a portion of digital data or code which is integral to the digital data to be protected by the system. This integral portion is termed the code portion and may include an algorithm that generates a registration number unique to an intending licensee of the digital data based on information supplied by the licensee which characterizes the licensee."


Related Links
Uniloc
Uniloc’s Patent
Bloomberg

Source : Tom's Hardware US

Talkback
Add your comment
tester3000 04/09/2009 2:59 PM
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tester3000 04/09/2009 3:00 PM
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-0+

Sucks to be microsoft*

christop 04/09/2009 3:04 PM
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-1+

I'm sure that's pocket change for them..

christop 04/09/2009 3:04 PM
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JMcEntegart 04/09/2009 3:10 PM
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-2+

christop :
I'm sure that's pocket change for them..



It's apparently 8 days of profit for MSFT but these days, money is money, right? And if the judge triples it? That's a big chunk of change.

pile 04/09/2009 3:11 PM
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-15+

That is what is wrong with this country. Stupid high judgments like that. Everybody wants to take what they dont deserve. I hope it is overturned. Microsoft wont have to pay for it. we wil. They will just raise their prices.

jj463rd 04/09/2009 3:20 PM
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jsloan 04/09/2009 3:33 PM
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-16+

im not sure, the us patent system is broken, needs major reform

average joe 04/09/2009 3:34 PM
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-17+

Just reading the patent it doesn't seem fair for Microsoft to get bitten by this.

How do you patent the concept that a user has to enter a software key which is used to establish the software is valid?

Who are they going to sue next... Star Dock, Atari, Blizzard?

"May or May not include an algorithm that generates a registration number.. "

These guys are clearly patent trolls. Dropping vague patents into the system and filing for extensions until a product comes out the looks like it might match the description. Then filing the patent and suing everyone on the planet.

Anonymous 04/09/2009 3:37 PM
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jsloan 04/09/2009 3:41 PM
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-10+

ok ive read the patent, its bogus as far as im concerned, such systems existed way before this one. so if something existed in lets say dos days does this mean if someone then patents the same thing for windows they have a valid patent, this is nonsense, infortunately the jury is made up of morons and the patent system is one major legal nightmare.

what ive noticed is that patents are being issued to opportunistic individuals for ideas that previously existed, but where not patented.

martin0642 04/09/2009 3:46 PM
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-9+

This is just stupid, patenting software is tantamount to parenting the process by one spreads butter on a cracker. You can't parent an idea or a concept without linking it to a specific implementation, and unless someone copies your specific implementation it's not infringement.

Ideas make the world go round, we really need a new patent system.

martin0642 04/09/2009 3:50 PM
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-1+

I have a basic issue with this patenting method, because an OS is simply instructions. Just like a recipe for cooking, someone took time to develop the method and the process, but the actual work is carried out at the individuals home, by the individuals equipment, and the cost of replication of said instructions is 0.

Trying to apply physical laws to non-physical objects is doomed to failure.

ProDigit80 04/09/2009 4:04 PM
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-1+

I think it's just plain stupid to have patents.
It's perfectly possible to come up with a valid idea, that,unknowingly has already been patented somewhere.
Especially with stupid companies like apple and sony, patenting hundreds,perhaps even thousands of items per year; they don't even use!

I could ask for a patent today that, if anyone uses a crayon and holds it before the sun to see it's colors it's beautiful!
Let's patent that, so everyone can pay me royalties if they use this methode!

the amount and especially type of patents are insane. I mean a while ago I read a company patenting a double layer of wall in notebooks!
Are you serious? If my processor is giving off too much heat to eg: the palmrest, and my hand gets too warm,it's only natural to put an extra conductor and perhaps isolator layer in between!
It's like a car going to patent wheelplugs, or convertible, or perhaps a turbo.

jsloan 04/09/2009 4:36 PM
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-1+

software, like music and books, should be limited to copyright. that's how it used to be. now with all these patents for things its a legal and financial nightmare. doesn't xerox parc then have patent for windowing systems, gui, object oriented languages, mouse, ect... if so we are all toast. what about ibm for os, computer languages. see the problem... its like someone writes a rap song and then noone else can without paying the first rap song author.

trinix 04/09/2009 4:37 PM
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-1+

yeah, it's getting out of hand. Sure I'd like M$ to suffer a bit and feel the other side of those patents, but at the moment there are more patent lawsuits than their are good things invented. At this time, patents are destroying the market and that was never the intention of the idea of protecting ideas.

Maybe I need to patent a way to access your folders from a GUI interface with a mouse. Who cares everyone has done it, maybe one or two fools will pay me money and maybe I can make the jury agree it's very important that I get the money so I can remain in my bed and think of more stupid things to patent.

jsloan 04/09/2009 4:42 PM
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-1+

arent patents for storage, retrieval, indexing, sorting, you know b-tree, quick sort, ect valid and we better start paying them for use or stop using them? if so we are in for a world of hurt.

jsloan 04/09/2009 4:45 PM
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-5+

the problems with jury is that they are computer illiterate, if the jury was full of professional systems programmers who knew about the internals of operating systems, computer languages, algorithms, ect then no problem, but the jury if full of joe six pack and socker moms, i guess a jury of your peers is like worthless, what does it mean to be a peer, one would think microsoft with all the cash could better defend themselves, maybe they need to fire some of their lawyers and get new ones.

deuce271 04/09/2009 5:23 PM
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tenor77 04/09/2009 5:24 PM
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-1+

I hate vauge patents. They offer nothing and the filer does not have the skill or intention to actually use it. That for me is the important difference between a patent troll and someone protecting their ideas. I hope this is overturned or else they could take this "may or may not" crap to so many other companies.

As a sidenote I do support patents for software. Anyone who does not has never written a program. It takes a lot of work and creativity to write an OO program. To me a well written program is like a good song or story.

ram1009 04/09/2009 5:47 PM
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-1+

How naive some of you sound.

trinix 04/09/2009 5:56 PM
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-1+

We don't like M$, we just hate the patent system more.

I know there is a lot of work going into programming and protecting your interest isn't a bad thing, but what is happening now is obstruction. The problem is that there is no way to tell a patent troll from a real patent protection of good ideas for the law apparently.

The system should be changed, so people who deserve protection should be protected and people who are just out for money can't get it with this system. M$ stealing a program from a small company is bad, but a vague patent that could or could not and has or has not in it is just too much to patent. Maybe it's valid in some patents, but like this patent, it's like patenting the left side of your screen and the right side and everything in between.

ShqTth 04/09/2009 6:06 PM
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-0+

I just looked at the Pictures for this patent.

Basically it describes this:

Software generates a installation code based on system pre-configuration.
ANd this installation ID is encoded.

User give this code to the company and pays money to get unlock code.

User types in code in system, system verifies the code is ligit then if ligit unlocks the system.

If code is false, or software is never registerd, software remains in demo mode.


Basically what is happening here, is the System/software makes a fingerprint of your system in a form of a serial #. and this is passed to the company, that generates a key using that serial #. As a result the keyl # can only be used on that PC.


But what this patent talks about software, not an operating system. AN operating system can monitor hardware, software only can monitor user enviroment (what the OS tells it). THis patent talks about using information from the User environment. (Time, last modification, date etc). a User environment Does not See PC hardware!!!!!!!!. But this patent was in the time of DOS where things has more access to hardware, but still in DOS there was no unique way of identifying hardware. Nothing back there has a hardware ID, bios didn't have a hardware ID. Network drivers were not common so not like the mac address was used. Also back then bios didn't have any system specific information or IDs/serials, and hard drives didn't have any specific IDs. So that is why the patent will not mention such things, as unique hardware wasn't a reality. Microsoft's solution monitors hardware, so its things one step further. (it knows when cards have been moved around, knows when drivers are installed or media is inserted, it knows when its a different motherboard even if same chip and same make)

So technically microsoft could dispute it, as there system is on the hardware level!


http://www.google.com/patents?id=K [...] _1#PPA7,M1

sheet 1 of 12 to 6 of 12 describes this system.

sheet 7 of 12 and on describes the system build into the controller of the player. (or possibly when disk is played)

-------

If you think about it, creating a fingerprint and transmitting it, only to receive a new key back, is kind of like SSL. Its just a form of encrypted information back and forth. Nothing new here. It is just using the PC as the certificate in a way.

THe sad thing is this patent seems like a new cool idea back then, but now its very common place. ANd things is so different compared to back then. (very vast compared to being limited)
What is sad

SecksPanther 04/09/2009 6:09 PM
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-0+

ram1009 :
How naive some of you sound.


Add your name to the list, ram1009.

The way I understand the intentionally very twisted description is: "this system relies on a code (such as a cd-key or item number) and possibly an algorithm which creates a unique registration number based on some of the user's personal information."

Maybe I'm reading it wrong (I believe it is written in a way so everyone who translates it will think they might be reading it wrong), but it looks like anything using cd-keys will fall under this category, whether they use someone's personal information or not.

Any lawyers reading the site right now? We could use some wicked translation to satisfy our curiosity.

Renegade_Warrior 04/09/2009 6:52 PM
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-0+

That patent should never have been allowed in the first place cause it is too broad with no specific details.

What it does describe can be achieved in more than one way.

I am in agreement that the Patent system is broken as it is being misused in ways that were never intended.

What's next? Is someone gonna patent something as stupid such as the act of getting out of bed, or worse going to the bathroom? This is plain nuts!

Greatwalrus 04/09/2009 7:05 PM
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-1+

Ah, yes, Microsoft gets a taste of their own blood. I really do not feel sorry that them at all. They deserve it after cases like the one against TomTom.

Of course, it is pocket change, but Microsoft can't continue on handing out this level of pocket change.

bungee91 04/09/2009 7:16 PM
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-0+

Jeez, you can't do ANYTHING without violating someone's patent it seems.
Seriously makes me not want to invent something.

ZeroTech 04/09/2009 7:37 PM
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-0+

Every time I see a case like this makes me wonder how much do the people accepting the patent actually knows about current technologies, whether they actually understand what is happening, etc.

LuxZg 04/09/2009 7:44 PM
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-3+

Well, everyone agrees - patent system is completely broken. But it will take too much time to change it :(

Overall, any "patent" including a "maybe", "possibly", "may or may not" - should be rejected immediately. It's like telling "I am pattenting a vehicle that may or may not be run on solar power, and may or may not include wings. Also, it will maybe have wheels, and possibly it will be made out of glass". But if you have patent rights on this thing, you have just patented anything that can be called "vehicle".

Plain stupid. Patents should be made for EXACT things. If I patent an engine that runs on diesel, and someone makes it run on water - I shouldn't have rights to it.

Same thing goes for patenting or registering english words.. Like "recycle bin" or "trash can". Who cares how it's called, you can maybe patent "an icon which is part of computer systems GUI, which, upon draging files on it, deletes them from storage device" (plus a lengthy description how it exactly works in the background etc). Now that seems specific. But patenting "an icon that represents a virtual trash can. Full stop." -> thats plain stupid.

2GooDrumr 04/09/2009 10:30 PM
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-0+

Isn't this how all anti-piracy basically works? an algorithm generates a code which activates software. Nice, let's all just pick on Microsoft.

grieve 04/09/2009 10:42 PM
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-1+

Windows 7 just went from @199.99 to $209.99

Damn broken pantent system!


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