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Judge: Microsoft Can't Sell Word in the U.S.

The verdict comes a few months after Microsoft was ordered to pay Toronto-based i4i $200 million for infringing upon a patent awarded to the company in 1998. U.S. Patent No. 5,787,499 covers software designed to manipulate "document architecture and content." Attorneys at McKool Smith, the firm representing i4i, explained that the software covered by the patent removed the need for individual, manually embedded command codes to control text formatting in electronic documents.

McKool Smith yesterday announced that Judge Leonard Davis, of the U.S. District Court for the Eastern District of Texas, had ordered a permanent injunction that "prohibits Microsoft from selling or importing to the United States any Microsoft Word products that have the capability of opening .XML, .DOCX or DOCM files (XML files) containing custom XML."

Judge Davis also enhanced the damages awarded in May, tacking on an additional $40 million for willful infringement, $37 million in prejudgment interest, including an additional $21,102 per day until a final judgment is reached in the case and $144,060 per day until the date of final judgment for post-verdict damages.

Microsoft has 60 days to comply with the ruling, and the Redmond-based company has already said it will appeal the verdict.