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	<title>AllThingsD &#187; Fraunhofer</title>
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		<title>That Extra $1.5 Billion Will Just About Cover the Cost of Those Xbox 360 Repairs</title>
		<link>http://allthingsd.com/20070807/alcatel-microsoft/</link>
		<comments>http://allthingsd.com/20070807/alcatel-microsoft/#comments</comments>
		<pubDate>Tue, 07 Aug 2007 17:21:02 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[Alcatel-Lucent]]></category>
		<category><![CDATA[Fraunhofer]]></category>
		<category><![CDATA[John Paczkowski]]></category>
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		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[MP3]]></category>
		<category><![CDATA[music]]></category>
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		<category><![CDATA[verdict]]></category>

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		<description><![CDATA[Alcatel-Lucent&#8217;s astonishing $1.52 billion jury verdict against Microsoft would have done much to bolster the company&#8217;s sagging fortunes. But the Franco-American telecommunications equipment maker is going to have to look elsewhere for financial solace. Finding that a jury&#8217;s decision was &#8220;against the clear weight of the evidence,&#8221; a federal judge yesterday overturned the February verdict [...]]]></description>
			<content:encoded><![CDATA[<p><img src='http://digitaldaily.allthingsd.com/files/2007/08/athrimage.jpg' alt='athrimage.jpg' />Alcatel-Lucent&#8217;s astonishing $1.52 billion jury verdict against Microsoft would have done much to bolster <a href="http://www.msnbc.msn.com/id/20060048/">the company&#8217;s sagging fortunes.</a> But the Franco-American telecommunications equipment maker is going to have to look elsewhere for financial solace.</p>
<p>Finding that a jury&#8217;s decision was &#8220;against the clear weight of the evidence,&#8221; a federal judge yesterday overturned <a href="http://seattlepi.nwsource.com/business/304871_msftalcatel23.html">the February verdict</a> that found Microsoft to have infringed upon two of Alcatel-Lucent&#8217;s digital music patents. The judge ruled that it doesn&#8217;t hold the rights to one disputed patent and hadn&#8217;t proved that Microsoft&#8217;s programs were using the technology in the other.</p>
<p>The decision is quite a win for Microsoft, which licensed the technology at issue in the case from its rightful licenser&#8211;German firm Fraunhofer&#8211;and was understandably a bit incredulous when Alcatel-Lucent sued it and won. &#8220;Today&#8217;s ruling by the judge reversing the jury&#8217;s $1.52 billion verdict against Microsoft is a victory for consumers of digital music and a triumph for common sense in the patent system,&#8221; Microsoft said in a statement. &#8220;For the hundreds of companies large and small that rely on MP3 technology, the Court&#8217;s ruling clarifies that these companies have properly licensed the technology embodied in the &#8217;080 patent from its co-owner and industry recognized MP3 licenser&#8211;Fraunhofer.&#8221;</p>
<p>For Alcatel-Lucent, of course, it&#8217;s a different story entirely. It&#8217;s lost not just the $1.52 billion jury verdict, but <a href="http://www.channelregister.co.uk/2007/05/15/alcatel_lucent_sues_microsoft_again/">the supplemental damages and prejudgment and postjudgment interest</a> it was suing Microsoft for as well. &#8220;The reversal of the judge&#8217;s own pretrial and posttrial rulings is shocking and disturbing,&#8221; <a href="http://www.bloomberg.com/apps/news?pid=20601087&amp;sid=aXQelCEz08tQ&amp;refer=home">said Alcatel-Lucent spokeswoman Mary Ward,</a> who noted the company plans to appeal. &#8220;The jury unanimously agreed with us. We believe their decision should stand.&#8221;</p>
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