Microsoft ruling tossed

Microsoft Corp persuaded a judge to throw out a jury's record US$1.52 billion verdict over Alcatel-Lucent's MP3 digital-music patents.

Alcatel-Lucent shares declined 22 percent to 1,385 yen (US$11.67) as of 9:56 am in Tokyo yesterday, Bloomberg News said. The company's Paris-traded shares on Monday fell 3.2 percent to 8.10 euros (US$11.17). Trading in Tokyo climbed to 500 shares, 17 times more than the daily average over the past six months. The Tokyo shares last traded on July 17.

United States District Judge Rudi Brewster said in San Diego on Monday that the jury's damage award couldn't stand because one of the two patents wasn't infringed. The second disputed patent was co-owned by a German research institute and Microsoft had a valid license, Brewster ruled.

The jury decided in February that Redmond, Washington-based Microsoft, the world's largest software maker, must pay US$1.52 billion for violating Paris-based Alcatel-Lucent's rights to the inventions, the largest patent verdict in US history. The two sides argued in court in July over whether the verdict should stand.

Alcatel-Lucent, the world's largest maker of telecommunications equipment, argued the record damage award was fair and reasonable and ought to be increased because it covered sales only through November 2005.

"The reversal of the judge's own pre-trial and post-trial rulings is shocking and disturbing," Alcatel-Lucent spokeswoman Mary Ward said. "The jury unanimously agreed with us. We believe their decision should stand."

Alcatel-Lucent plans to appeal, Ward said.

Shares of Microsoft rose two percent to US$29.54 in Nasdaq Stock Market composite trading on Monday. The stock rose as high as US$29.80 in after-hours trading.