A federal judge has found that Microsoft encroached on patents held by a Tucson, Arizona-based company for a process that improves the quality of images displayed on computer screens and paper printouts.
Research Corporation Technologies (RCT) filed suit against Microsoft on December 21, 2001, in U.S. District Court for the District of Arizona, in Tucson. RCT charges that Microsoft Windows uses technology covered by some of RCT's patents. Its patented technology is also being used in some Office applications, according to Brian Ferguson, an attorney with McDermott, Will & Emery, which represents RCT.
Judge Finds Cause
Senior U.S. District Court Judge William Browning has granted a motion for summary judgment brought by RCT. The judge ruled Tuesday that the company has proved four patent claims while Microsoft failed to offer sufficient counterevidence. The software maker now must defend itself in front of a jury, according to a copy of the judge's order.
"The judge has determined that Microsoft is guilty of patent infringement and that the technology is used in some of Microsoft's biggest products," Ferguson says.
The case will now continue to trial, where a jury will hear evidence and determine the extent of the patent infringements and the resulting damages to RCT. Damages could potentially be in the hundreds of millions of dollars, Ferguson says.
RCT helps universities and start-ups develop technologies. It then patents those technologies and attempts to license them. This case involves patents related to technology used to create halftones, which was developed at the University of Rochester, in New York. Halftones convert images into a series of dots and are used to display images such as photographs on computer displays and in printing.
Similar Cases Settled
RCT has already settled cases over the same patents with Hewlett-Packard and Lexmark International, Ferguson says. HP and Lexmark, as well as Seiko Epson, now license the technology from RCT, he adds.
Microsoft is disappointed in the ruling and will continue to fight the suit, says Jim Desler, a company spokesperson.
"We believe that there was no infringement and the technology in question was developed by Microsoft. We also contend that the RCT patents are not valid and look forward to the opportunity to present evidence on this point," he says.
No trial date has been set, but both Microsoft and RCT expect a jury trial near the end of this year or early next year.
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