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August 11, Texas Southern District Court ruled on the U.S. software giant Microsoft Word software, which contains a series of custom XML (extensible assembly language) function violated Canada i4i company’s franchise. Because they had been determined the existence of willful infringement, the district court asked the U.S. company Microsoft Corporation to pay i4i total 290 million U.S. dollars in damages, and issued a permanent injunction. The restraining order will take effect within 60 days. This case has been described as the legal profession ants toppled the elephant

Small companies to overcome the software giant

In this extensive attention in the trade litigation, little-known i4i company acting as a “giant killer” role, after a 7-day trial race, eventually Microsoft showdown, successfully staged a “ants toppled the Great as “a good play. Also means that since October 12, 2009, Microsoft will not be able to sell any in the United States to continue with a custom XML features Word series. Stones from other hills may serve to polish jade, the Microsoft case has already showed us to break the technological monopoly of foreign enterprises and the market hegemony bright prospects.

The trial proceedings, both the original defendant has employed every means: i4i companies to ask the Court finds that Microsoft’s conduct constituted a direct infringement, contributory infringement and inducing infringement; decision on his pay punitive damages; prohibiting continue to sell Microsoft Word, a permanent injunction and other Litigation request; Microsoft has put forward a number of defenses, including: technical features of the patent was earlier made public claims is obvious that the patent rights of persons because of the unfair acts can not be implemented, the patentee slack and so on. From the court the circumstances, i4i apparently come prepared, in more than one request for a direct confrontation, Microsoft were defeated because of inadequate evidence. As used in civil proceedings is “preponderance of evidence” rule, in the evidence gained the upper hand of the i4i company won the first battle against Microsoft’s victory. According to the company i4i described known since the end of 2005, after Microsoft’s violations, which spent nearly four years of time to prepare for the proceedings. This case, both the expenditure of costs totaling nearly 30 million U.S. dollars. Because Microsoft has already filed an appeal, this figure will continue to be rewritten. Microsoft has on the decision to the U.S. Federal Circuit Court of Appeals filed an appeal and request for suspending the implementation of the District Court issued a restraining order.

Microsoft has had to adjust their own

Word will judge whether the case would have broad impact on the user’s daily use? Microsoft’s defense, once pointed out that the XML capabilities of its custom software, thousands of Word is just one of the functions, court that issued a permanent injunction to prohibit the thousands of other Word functions would be incurred to sell the user’s dissatisfaction. However, the court noted that although the custom XML functionality is just a feature of Word, but the evidence shows that only about 1% of users will use this feature, Microsoft removed this feature will not have to cause significant harm; on the contrary, due to Word products are completely occupied the plaintiff’s XML product market, does not issue a prohibition order will i4i companies have irreparable loss. And the court held that, through the “software patch” approach to exclude infringing products, features Word For Microsoft, there is no difficulty, combined with Word products do not relate to public health or safety issues, the court ultimately did not adopt Microsoft’s defense. In addition, since the prohibition order is not directed at prior to its entry into force, that is prior to October 12 have been sold or licensed product of the Word, so Word will not affect the use of existing users.

However, once the prohibition order is in force, Microsoft will have to redesign the existing Word2003, 2007 and other ongoing research and development in the Office product line. It is difficult to imagine that spends huge amounts of money for Office suite of software at Microsoft’s global anti-piracy activities, its production of the infringing products Word itself! However, as the global software industry giant, Microsoft has a huge industry and the market will naturally lead to awe all over the world, hostility and litigation. Microsoft’s legal action, is not nothing new, and for an early settlement of various disputes, Microsoft spent billions of dollars every year on care-related cases.

Independent innovation is the fundamental

“The best monopoly profit is a quiet life.” Entering the information age, Microsoft has by virtue of their advanced ideas and keen insight and quickly occupied the market in the short term will be to create a stunning market performance: more than 500 million computers worldwide dependent on the daily work of their production software; its employment of software developers packed a sufficiently large American State University, the operation for several decades has created an even more billions of dollars worth of software empire. However, the software will inevitably bring about high value-added competition within the industry. That once and for all, sit back and enjoy the time has gone. In recent years, Microsoft has had to struggle with the challenges from all sides. Once some slack, it may Enterobacter capsize. This case is a good example: count on strong software industry tycoon XML patents have long known about the existence of competitors, but its turning a blind eye, thinking that Word series products are widely known can be obtained by an opponent out of the market. Microsoft’s practice is not only not work, but just the opposite: that they have been identified as willful infringement the court, into a greater being passive.

Microsoft Word case is just a microcosm of modern warfare just business. The operation of modern enterprise has long been detached from the labor-intensive model, and greater use of intellectual property core competitive force to siege enclosure, and building barriers. In the economic globalization today, as a big developing country, China should be how to implement their intellectual property strategy, take the road towards strengthening intellectual property rights is that we are facing a major problem.

Due to start early and strong sense of Western developed countries, corporate intellectual property strategy that is more mature, from creation to use and manage the operation, has a set of standard models. This patent as the foundation for most of the enterprises have a set of technical preventive measures to curb foreign rivals, internal development and growth. In Microsoft Word case, the plaintiff will be David and Goliath case for us a vivid lesson: “ant” Canada i4i’s patent as a weapon in the “elephant” level opponent’s core product areas for its heavy blow. In the knowledge of the infringement after the opponent, owing to financial difficulties, i4i the company can not even start immediately for the Microsoft litigation, although its actively looking for investors, and ultimately received the support of venture capital, and thus won a victory in the first instance. In the United States, patent cases, time-consuming appeals the trial the losing party will usually choose to pay a settlement fee in order to remain silent. As the core of Microsoft’s Word software is one of the products, if this litigation continues to see-saw go, Microsoft’s reputation, brand value will be affected. So, come from behind i4i company, whether in response to the subsequent proceedings, or market share in the future, no doubt hold more chips.

Stones from other hills may serve to polish jade, Microsoft has given us the case of large foreign companies to break the technological monopoly and market domination bright future! Building an innovation-oriented society has sounded the clarion call, turn a blind eye, legalistic and we will be unable to keep up with the pace of history; the initiative to adjust, positive change, is competing in the fierce market captured the commanding heights of countermeasures.