Uniloc’s $388 Million Lawsuit Against Microsoft Gets Overturned By Judge

Posted Sep 30, 2009

Uniloc Corporation is a security and copy protection software company that filed a lawsuit against Microsoft worth about $388 million. Uniloc claimed that Microsoft was violating a patent held by the security company. Judge William Smith of the U.S. District Court for the District of Rhode Island overturned a ruling by a jury that decided Microsoft did not have the rights to use their intellectual property.

“We are pleased that the court has vacated the jury verdict and entered judgment in favor of Microsoft,” reported Microsoft spokesman Kevin Kutz in a statement. This case has dragged on for about six years and went through several courts. Uniloc said that Microsoft used their patented technology for software activation. The patent in question is #5,490,216. Below is a process chart of how the patent works.

Uniloc CEO Brad Davis said that the company plans to appeal the case again. “We are disappointed by the decision the trial judge has made to overturn the jury’s unanimous verdict in Uniloc’s patent infringement case against Microsoft,” stated Davis in an interview with seattlepi.com. “We believe that the jury’s verdict in April was thoughtful, well reasoned and supported by the evidence presented. Since the patent status remains unchanged, Uniloc will continue to protect its intellectual property and appeal the Judge’s decision to override the jury’s verdict to the US Court of Appeals. We are confident that Uniloc will ultimately prevail.”