This is not a Federal Circuit software patents decision, but a lower court decision. In an appeal, the Federal Circuit could completely reverse the lower court.
This case involved two Lucent software patents, Nos. 5,341,457 and Re. 39,080, relating to reducing the size of computer audio files.
In this case, a jury awarded a 1.5 billion dollar verdict against Microsoft.
Expect to see Microsoft make further efforts to reform the patent system. Microsoft has been actively trying to weaken the patent system even though they are one of the U.S. Patent and Trademark Office’s largest customers. For example, in 2004 alone, they filed more than 3,000 patent applications.
If you would like to see some of Microsoft’s patents, go here: http://patft.uspto.gov/netahtml/PTO/search-bool.html
and put Microsoft in Field 1, and pull down Assignee Name for Field 1.
Recently, Microsoft and many others commented on proposed rule changes to make it more difficult to file continuations. Please click here, and compare the views of various bar associations with that of Microsoft:
http://www.uspto.gov/web/offices/pac/dapp/opla/comments/fpp_continuation/continuation_comments.html
Contrary to Microsoft’s position that the ability to file Continuation applications should be restricted, many patent attorneys feel that continuations are often necessary because Examiners do not have sufficient time to properly examine applications, and routinely issue “Final” rejections before fully understanding the invention. A continuation becomes necessary just to keep the discussion going long enough to make sure the Examiner understands the invention described in a patent application and understands the prior art.
This verdict will likely make Microsoft want to continue to press for patent reforms that weaken the patent system. Microsoft and others are part of a lobbying group called the “Coalition for Patent Fairness”:
http://www.investors.com/editorial/IBDArticles.asp?artsec=17&artnum=2&issue=20070227