Microsoft fined $200m for breaching patent

Microsoft, the world’s biggest software maker, was ordered to pay a $200m penalty for a patent infringement.

A federal jury awarded the damages to i4i after it agreed that certain versions of Microsoft's Word 2003 and Word 2007 products use "extensible mark-up language", or XML, in a way that infringes i4i's patent.

The $200 million award reflects the jury's determination of a reasonable royalty for Microsoft's infringement.

To date this year, the verdict represents the fourth largest jury verdict in the US and the second-largest patent jury award, according to news reports.

Michel Vulpe, founder of i4i and inventor of the patent, said: ‘We feel vindicated with this result.’

Michael Cannata, director of i4i LP and advisor to the Northwater Intellectual Property Fund, says: ‘This award demonstrates how companies like i4i can enhance their ability to protect and, when necessary enforce, their patents by having a partner that provides patent expertise, litigation management skills and the capital to succeed in patent enforcement and litigation.’