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August 31, 2007
An End to Denial
The
Eolas patent infringement win over Microsoft, for infringing
5,838,906, garnered
a $520 million damage award, and became a cause célebre for those howling that the patent system had run amok. In alchemic
transformation, amok turned into bucks.
The trial court assessment resulted in Microsoft seriously thrashing: reexam left the patent intact; the overseas portion of the tab got whittled on appeal, and remanded; a single-click workaround was installed for Internet Explorer; finally, Microsoft discovered that it had supposedly invented the claimed technology, and the patent office obliged to hear the tall tale.
To the sound of deafening silence, save a whispered death rattle, Microsoft settled.
Naturally, terms of the settlement are confidential; both sides are mum about it. Privately held Eolas is a spin-off company from the University of California, from whence the patent originated. On Monday, a "dear shareholder" letter by Mark Swords, COO, announced an anticipated dividend of $60 to $72 per share, whatever that means in scale.
The matter was set for retrial on remand from the CAFC, but the two agreed to delay at the end of July, pending the outcome of settlement negotiations.
The saga lasted eight years.
Posted by Patent Hawk at August 31, 2007 1:31 PM | Litigation