Microsoft loses patent case, gets $388 million fine

Techspot.com : "Microsoft was hit with a $388 million patent infringement fine yesterday, following a lengthy legal brawl that dates back to 2003 with security software vendor Uniloc. The patent in question was for an anti-piracy solution that prevents the creation, distribution and use of unauthorized copies of software – which Microsoft allegedly infringed with its software activation methods. "

[ThatCanadianGuy]

:)

[JhawkFootball06]

Its never good when a business loses that much money. Just hurts the business and people who are working for the business.

[ultimolu]

Jhawk, try telling that to the fanatics who would jumping around at Sony's operating loss during a recession!

[II Necroplasm II]

I'm sure bill gates will just put that back in the bank lol. But then again he's done and retired, I doubt he cares.

[Pennywise]

fat-american... I get it.. your name, your avatar and you way of saying dumb things that are far from the truth, but come on... everyone knows Sony is Japanese.

[thewhoopimen]

I hope you were sarcastic there buddy. Sony a Chinese company? lol. Good one. MS making beelions on xbox? Maybe the OS, but not the console lol.

@fat editing and trying to cover up will get u nowhere.

[fat-american]

i didnt say they are chiense comapany. learn to read

edit: cover up what? you can call me fat all you want. theres nothing wrong with being fat. am proud of who i am !

[OmarJA]

Well they can always fire more people as usual.

[Lifendz]

this is literally a drop in the bucket to them.

@Fat American:

Can you please provide the link to Sony's gaming division financial statement that supports that statement?

[BRG9000]

Well it's figuratively a drop in the bucket. To be literally a drop in the bucket Microsoft would have to be using very small amounts of liquid as currency. :)

[WhittO]

no matter how big the Company, $338 million is ALOT of money.

and lol @ the xbox business making "billions".

[II Necroplasm II]

this fat-american guy has me cracking up XD

[vagisil]

you're response was 1.2, which is the FIRST comment to mention sony in this thread, so why did you run ya trap at someone else about "bring sony into it?" you are the first one to bring up sony.

[specialguest]

The old bait and switch trick ay? hahaha

[JokesOnYou]

almost every huge mega-corporation gets sued all the time...you just hear more about micro because they are evil, still they will likely appeal which means by the time this case is actually settled chances are they will pay much less than that, typical strategy.

JOY

[ultimolu]

vagisil, why don't you contribute to the article instead of insulting me?

I used Sony as an example, because when Sony loses money 360 fanboys such as yourself get excited.

Epic fail is epic indeed.

And look, you edited your comment like the stealthy insulter that you are.

EDIT: Necro, do I care? No. I could care less who I annoy on this site. If I have something to say, I *will* say it.

Oh give me a break Necro. As if you haven't proven time and time again that you're a fanboy.

Obsessed love? If I had an obsessive love for an electronic brand, everything in my house would be of that brand. That's what you call an obsession.

I simply like Sony for making quality products. That's not obsessive love.

Grow up.

[II Necroplasm II]

He's got a point, you are really annoying. all you do is insult people here yourself.

You don't have to respond to me just hit your special disagree button.

"If I have something to say, I *will* say it."

ummmm yea..... that's what this comment section is for, you don't have to tell me that. And this is all I will post about that. I'm not falling into your pointless arguments over your obsessed love over a electronic brand.

[vhero]

couldnt happen to a nicer company :)

[Sarick]

"Its never good when a business loses that much money. Just hurts the business and people who are working for the business."

It's also never good when a big corporation with a huge legal staff copies a patented innovation of another smaller company. Not pointing at only MS but you have to think about it. Those people who created the innovation are getting their work stolen by a company that can hold them in court for over 5 years. This can be just as destructive if not worse for the smaller company. Not everyone has the budget to hold out in court vs the big guys.

Yes, it's a real shame that it hurts the big busyness but, look at it from the other side. It's like a attacking a tank with a toothpick. Sure the big company loses money. Think about the innovators who created the technology first, they're losing money too.

Do you think the big company that disputed the case wanted to pay them for using this technology? Hell no! They made them fight 7 years for it. So not only did the smaller company get screwed for 5+ years, they had to pay legal fees and lose money trying to get $$ rights to their patents.

The smaller companies have families and mouths to feed as well just like the big ones. Just because it's a huge company doesn't give it the right to steal innovations from smaller companies. Crooks big or small shouldn't be given pity when they earn $$ off the backs of the poor, less fortunate or accomplished businesses.

Who's screwing who and who's hurting the most?

[locos85]

There goes the next DLC...

[pixelsword]

I have my reservations about any corporation, but to have a fine like this handed down could mean a loss of jobs, and in this economy that is nothing to smile about***. Besides the loss of jobs, If you're rooting for a winner in the console war, why would you want to win it like that? I say, let the better console win, even it it takes a little longer or if it has to be assessed after the console's gen.

That makes it great for all gamers when corporations have to slash prices and make things better because they other guy could 1-up them at any minute.

***I also realize that the fine could also create jobs, but that is usually less likely, but since the damage is done, here's to hoping!

[Sarick]

The reason why fines are so big is because the company who broke the law is big.

If the average man got sued for $5000 that'd severely impact his life. If a multi-billion company got sued the same amount for the same infraction it'd be a slap on the wrist.

Fines are big to cause harm, or punish a company for abusing their power. If the fines amounted to lunch money then the system would be a lot worse then it is today and copyrights, malpractice etc wouldn't be taken seriously.

Yea it stinks that people are losing jobs because some higher up decided to do something shifty but someone has to pay the piper and it usually translates directly the working man. If the heads of operation where responsible instead of the corporation then the lawsuits would go after the criminals instead of the cooperation.

That's not the case though here. The fines are taken out of the company not the rich higher ups that knew they was breaking the law. Look at Enron. The higher ups knew the company was about to go belly up and they sold all their stocks. The employees had no idea they was going to lose their jobs.

Turns out the high ups ran off after liquidating their stocks. They went and bought exotic vacation homes while the employees where packing up their offices.

It's really sad but like I said the working class always get hit the hardest and most of the time they had nothing to do with it to begin with. it's the greedy self centered higher ups that run the show. When the problems start they're usually more protected then the peons who work under them. It's the people below them that suffer and the way the system is setup the real criminals still turn a profit.

[ViceKingz]

Bill Gates probably has that amount of money lying around his sofa.

[Face Palm]

That's as much as 360 exclusive Modern Warfare 2 DLC.

[ZeroBlitz]

"It's like a attacking a tank with a toothpick."

Haha, I love that image.

[No Way]

You are sad, dude.. Seriously.

@ultimolu - "I used Sony as an example, because when Sony loses money 360 fanboys such as yourself get excited. "

When will it ever end..? -.-

[Christopher]

It's also never good when a business swindles an individual or other company out of their money by infringing on their property. Unfortunately, the company as a whole has to pay for the decisions of but a few.

Either way, this has yet to be decided. Looks like Microsoft will keep this in the courts as long as possible.

[KingKionic]

From article :

"The patent in question was for an anti-piracy solution that prevents the creation, distribution and use of unauthorized copies of software – which Microsoft allegedly infringed with its software activation methods"

Still thats alot money...not to ms ofcourse .

[StayHigh]

I don't think Microsoft is happy that their losing money..They are in the business to make profit..Whos dumb enouogh to say im rich and it don't matter how much money i lost..

[Pennywise]

Ironic how they lost more money using a method of DRM that is supposed to stop them from losing money to pirates.

[KingKionic]

This article shows ms got sued trying to protect there software from infringement.

[BRG9000]

At a time when they're laying off folks just like everyone else is, of course this is a lot of money. This is enough to pay 4,506 employees for a year (at $75K salary).

[Bob Dole]

The ironic part about them doing this to not lose money to pirates is that it DOES NOT WORK. The sh1t gets hacked damn near over night, but whatever they can afford it hella more than whoever they stole it from.

[rebirthofcaos]

mmmmm victory

[SpoonyRedMage]

Hmmm, Sony loses over a billion this year...

[Sony Rep]

I'm sure M$ has a few more of these cases lined up for them... I mean it wouldn't be a M$ year without them violating the law in some way...

oh. lookey... a case where M$ would have to pay back money to every person who had RROD. Doesn't look good when we all know M$ knew about the hardware failures, and that's the women's defense...

http://www.gamepro.com/arti...

[ultimolu]

Drag Sony into it as usual right?

[SpoonyRedMage]

Well it's a reply to the people take joy in MS being sued. like two of the people who posted before me.

People take joy in MS losing money and that's all good but if it's Sony it's suddenly bad.

@V: Well then people should just stop being idiots.

[ultimolu]

People take joy in Sony losing money as well. And when it's Microsoft, it's suddenly bad and they try to brush it off because they're naive to think Microsoft can never go bankrupt.

[Chris399]

One company is 1.5 (estimated, not known) in the hole, and another company, in excess to whatever other losses they've incurred this year took a bonus $3.8 (basically 4) billion dollar hit.

Which is worse?

And why even make such an inflammatory statement in the first place?

http://money.cnn.com/2009/0...

For whomever thinks that MS is immune to a recession and has a secret garden of money trees. All companies are feeling the recession right now.

EDIT: @ Spoony. Thanks for the correction on my math. That aside, your statement still contributed nothing but bile to the conversation, and we really have enough of that around here. Fanboy rants are spewed all over the internet on a daily basis. Why add to the issue?
Oh and to the fellah right below me, gross profit is a relatively useless statistic. What did they net? (Not being argumentative, I'm at work and can't really check atm.)

[Daoshai]

Microsoft is still in the black, no one said they aren't hit by a recession though.

Microsoft's year ending mar31:
Gross Profit (ttm): 48.82B

[SpoonyRedMage]

@Chris399: A Billion is one thousand million so it's 0.38 Billion, not 3.8.

I explained why I said it becuase of the "Hmm victory" comment and just the simple ":)" above me. If people are allowed to take delight in MS losing money then surely it's the same for Sony?

Or may be it's double standards like with the NPD and Japanese sales.

[kaveti6616]

Epic Fail, Chris. Of course, this is not good news for Microsoft but no one should be happy about this. I own an Xbox 360, so if MS loses this much money, I have to start wondering what they're going to cut to make it up. They might not release any games for a few months. They might close down a dev company. They might do a bunch of things that would hurt me as a gamer. So, no, I'm not happy about this, nor am I happy if Sony loses money.

Every single one of you who came here and went ":)" or said something along the lines of "Good. Whenever Sony loses money Xbox fanboys are happy about it, so now we can be happy." <--- Anyone who says that is automatically a Sony Fanboy. Stop getting happy over companies failing, companies being sued, companies doing this or that. And by the way, if MS stole the technology from that other company, we already know that tech is BULLSH1T because xbox 360 games are still pirated like crazy. That small company is suing MS for violating a patent for a security measure that doesn't even work.

EDIT: Look at the idiot below me. Sony Rep, I'd take a bubble away from you but I already know you have several accounts to replenish your supply. Suffice it to say that you are a bad person and if I met you starving in the street I'd look the other way.

[Enigma_2099]

Double standards my @ss.. and yes I'm getting a kick out of this news. That's $388 million less they can use to screw the competition over. Who knows... if they run out of money, maybe they'll be forced to give up all those exclusive JRPGs they bought... you know, the ones they claimed came on board because they thought it was the "superior" system...

[Omegasyde]

"Fanboy rants are spewed all over the internet on a daily basis. Why add to the issue? "

QFT
Gj Chris

Spoony, you automatically riled up the Ps3 fans. What if that canadian guy (first comment) was a Nintendo fanboy?

It would be ok then huh?

Please leave N4g, your fooling no one Fan boy/girl. $$$$ = jobs, meaning something is going to have to get cut which unfortunately could be jobs. You don't care however, you are heartless miscreant hiding behind a monitor.

[darkzodiac55]

hmm good to know that you are sony´s financial advisor

[Sony Rep]

:]

[Omegasyde]

Come on, grow a heart. That money lost could hurt the company and Microsoft might have to do more lay-offs.

[Mr Face Creamer]

That's 16x times how much Sony is going to profit from the PS3.

[CypH]

then the fanboys cry

[BRACHATTACK]

.

[ultimolu]

Souuuuuul train!

Wait...wrong article. xD

But ouch. .__.;

[kurochi]

if MS hadn't paid 50 mils + (insert amt. here) for GTA & FFXIII, they would probably have paid off a third of those fines....... LOL

[ShabzS]

this is the end for the arcade deals of the week... enjoyed it while it lasted

[II Necroplasm II]

lol

[kurochi]

witty.... you get a bubble for that. LOL

[Sir Ken_Kutaragi]

IS THAT ALL??? I'd HANG them!!! ;-D

GOD i can't stand Micro$oft and their ChatBot Fans!!! :-/

[fat-american]

Why. because microsft is better than sony?

Also learn to spell . you dotn make sense

[BRG9000]

"Also learn to spell . you dotn make sense"

Quoted for irony.

[II Necroplasm II]

His whole account/profile is based on irony.

[cryymoar]

i like how Sir Ken spelled everything right. =]

[Deadman64]

post a picture of yourself. I need a good laugh. Preferably step out of the darkness of your mothers basement to take the pic.

kthxbye

[Sir Ken_Kutaragi]

You said in the 'Gamer Zone' -

"i didnt say they are chiense comapany. learn to read"

Hmm its(or is it it's?) - Didn't + Chinese + Company???
And i thought my Spelling was bad!!! ;-D I couldn't care less if i did spell anything wrong anyway. It's not my problem if it bothers you or any spelling Police on the internet!!! ;-D

Tx ya l8er Gabe Newell ;-D iiii4real;)

[Fishy Fingers]

They'll just appeal and the battling will continue on.

In fact, yep, they've mentioned their intention to appeal http://www.pcworld.com/busi... so I doubt Uniloc will see any of that for sometime.

[TwistedMetal]

this is the 4th or 5th time M$ is payeing for something like this, this year alone lol.

[MGOelite]

just think what that money could have done? fix the RROD? fix E71? fix the fact the 360 has no games

[fat-american]

rrod has already been fixed

[MGOelite]

if you think that your more of a fatty american dumass than i thought

[cryymoar]

Last I checked, xb360's were still breaking like, well xb360's. haha, there's really nothing else to compare it to.
They are also scratching their own discs and wasting your money. I wonder if Microsoft has a warranty on that.

[Kushan]

Why on earth are people even mentioning Sony here? Sony has nothing to do with this, this has nothing to do with operating losses or profits, it's to do with patent infringements (Something Sony also has to deal with and has also had mixed success/failure with). This doesn't even have anything to do with Console gaming or the 360!
Seriously...

[BRG9000]

Agreed, and bubbles for that sir. Every single industry post on here degenerates into Microsoft vs. Sony. It has nothing to do with anything.

[Bob Dole]

Bob Dole feels the sudden urge to mention Nintendo for some reason.... F*CK NINTENDO! Bob Dole hopes they lose eleventy-billion dollars this year because he's a retard and wants them 2 fAILZZZZZZZZZ!

[dogmeat eater]

ouch

[dogmeat eater]

Stop making us look bad! My god you truly are an idiot. Look at that engrish.

[dogmeat eater]

is that a real pic of you? If so you look like vile.

[Dimitri]

Thats quite a lot which means no games for 360 for the next 3 years.

[KingKionic]

well...thats according to Aaron greenberg...

[DarkSavior]

http://en.wikipedia.org/wik...

[cyclindk]

Microsoft getting fined for essentially "pirating" technology designed by someone else to prevent pirating of a different sort... :)

[Bob Dole]

Hehe didn't think of it that way.

[ngg12345]

I would actually appeal this case. That seems like an excessive amount of money (especially since the patent probably makes no where near that amount of money). It seemed as if the judge had a grudge on microsoft. Because that 388 million dollar fine basically hurts microsoft profit report significantly.

[Coolrah]

That is hefty

[Gun_Senshi]

For every MS loss the world espically consumer gains.

[robotnik]

Good news.

[robotnik]

Microsoft loses.

That's all the news header I had to read.

[Midgard228]

they lose way more than that in RROD and Error E74 fixes and lawsuits aswell as laser burn lawsuits, doubt they are worried bout a measly 388 million,

bill gates accidently dropped his pocket change at the entrance when he retired so they're set financially for a while.

[bigjclassic]

it is getting old, but MS has enough money to handle it so I guess suing MS will continue.

[Kyur4ThePain]

And saying they have the money to pay a hundred times will only lead to them running short eventually.

[karan8624]

1 million= owned
5 million= wow owned
20 million= ZOWNED
50 million = OMG OWNED
100 million = HHAHAH OWWNNNNED
$388 million = OOOOMG YOU GOT COMPLETELY OWNED UP THE ___

[psiom]

This is bad news for Microsoft.

Do they even have that much money?

Does anyone?

I've never heard a number that high...

[karan8624]

Microsoft is a multi-billion dollar company. Still, a 300+ million dollar loss is quite a blow

[Microsoft Xbox 360]

This puts a smile on my face.

[akaFullMetal]

Ouch

[JJFNIGHTS80]

Now finally M$ gets a HUGE FILE SUIT. Just like Sony and Nintendo. I just wish these patents stop sueing big gamming companies for big a$$ money just because they stole their idea. Just because their making more profit in software games and hardware, they can't be no proof of any of the big 3 be stealing ideas from someone else. I just whish they stop this patent lawsuit damn it.

[Mo0eY]

Another company added to the list that M$ tried to copy. Good job.

[kaveti6616]

Ya, it seems that...
A.) Either a Xbox fanboy is not happy that I didn't take a jab at sony or
B.) A Sony fanboy is not happy that I am unhappy for Microsoft's loss.

[FFXI101]

"Justice" M$ got what they deserve.

[Campy da Camper]

if they well be sent a prepaid return box to send the check in.

[Shadowstar]

So... Were these guys more patent squatters, or legit?

The whole "stealing someone's anti-piracy work" is too damned funny, either way. I guess everyone really does lose with DRM! :D (Well, except pirates, of course, because they just circumvent it.)

[knightoftears]

Ouch, regardless of their total assests M$ got anal raped on this one. That's alot of money for ANY company to have to shell out...and it was over some sh!t they could have prevented. No bonuses for awhile I guess.

[rubixCubos]

This is small change for the evil b*stardos, or 'coppers' as we say in England (referring to the colour of 1 pence and 2 pence coins).

[narked]

so pirating software which uses this DRM thingy wasnt really illegal ye? lol cause if u break an illegal thing, its not illegal right?

[maspi]

today I'm very happy! and it's a sunny day!

[Guitardr85]

Does anyone know on average MS's yearly revenue? Even for a large company like Microsoft, this is still a nice chunk of pocket change...

[Daoshai]

for the last twelve months microsofts revenue was : 61.18 Billion

http://finance.yahoo.com/q/...

[Guitardr85]

Thanks Daoshai!!!

[doctorstrange]

wow imagine if they had made a 360 game for this money (never would have happened I know) would have been awesome

[Bill Gates]

.