In 2001, Research Corporation Technologies (RCT) sued Microsoft for infringing six patents related to image processing (5726772; 5708518; 5543941; 5477305; 5341228; 5111310; all titled "Method and apparatus for halftone rendering of a gray scale image using a blue noise mask"). Three of the six were knocked out by summary judgment at Microsoft's behest. The other three were found unenforceable because of inequitable conduct.

The inventors, Kevin Parker and Theophano Mitsa, withheld adverse information from the patent office during prosecution. The patents claimed "visually pleasing, non-clumpy images" using a compression algorithm, but the inventors knew that the algorithmic software couldn't deliver what was claimed; the claims were not enabled, but the inventors didn't tell the patent office. Microsoft dug the dirt during discovery, and were helped by Mitsa's & Parker's less-than-credible 2005 trial testimony.

Owing to the egregious behavior, RCT not only lost its patents, it was just ordered to pay Microsoft's legal bills by the presiding judge: an $8.6 million dollar tab. An attorney for Microsoft crowed, "we're thrilled." RCT cried that it would appeal.