Microsoft loses 1.5 billion over MP3 patent
Microsoft was ordered by a federal jury to pay $1.52 billion to Lucent-Alcatel for violating their MP3-related patents. Basically, Microsoft products (Windows Media Player) play MP3s. And now they have to pay for it.
If you’re wondering what does Lucent-Alcatel have to do with MP3, the answer is: not much. But MP3 was developed by Bell Labs, which was bought by Lucent. Bell Labs developed the MP3 format together with the Fraunhofer institute, and Microsoft (and others) have settled the matter with them, however Lucent-Alcatel also hold patents for some aspects of the technology, and now they want their share.
The consequences of this decision are immense. Anyone who ever used MP3 technology might have to pay millions (or billions) of dollars to Lucent-Alcatel simply for using the format. For some, it may mean abandoning this format, which in turn means that the users will suffer the consequences, too.
As much as it’s nice to see Microsoft nailed for software patents, something they’d very gladly do to someone else whenever they have the chance, this is a good time to remember what a smart guy has to say about software patents and why they shouldn’t exist.
February 23rd, 2007 at 10:53 am
That is pathetic, $1.52 billion and just for making a program that can play the files? For me, Microsoft was the one who got MP3 popular. Who has ever heard of Lucent-Alcatel and Bell Labs? I know I certainly haven’t.
February 23rd, 2007 at 10:54 am
They don’t have to pay JUST yet. They’re going to appeal and prolong it. The problem with patents, especially mp3 patents, is that it’s almost like patenting the ability to breathe.
February 23rd, 2007 at 11:43 am
Much better having no software patents like we do in South Africa
http://www.tectonic.co.za/view.php?id=1331
But here I side with MS - if they had won would this not have made life easier for the linux distros?
March 6th, 2007 at 4:49 pm
Microsoft made MP3 popular? Remember your history. Napster made MP3s popular, and around that time you’d use third party media players to play your MP3s. Later after the MP3 explosion, Microsoft gave Windows media player mp3 capabilities.
April 11th, 2009 at 6:32 am
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November 19th, 2009 at 8:31 pm
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