Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News

      Analysts: Microsoft Getting IP House in Order

      By
      Ryan Naraine
      -
      November 8, 2004
      Share
      Facebook
      Twitter
      Linkedin

        This year alone, Microsoft Corp. has shelled out in excess of $3 billion to settle legal disputes with hardened rivals, but ongoing litigation with the European Union and a slew of software firms will keep the companys lawyers busy for the foreseeable future.

        Microsofts $536 million payout to Novell Inc. on Monday did not include the longstanding Novell antitrust claims associated with the WordPerfect business. Also outstanding are patent infringement and antitrust cases filed by Burst.com, RealNetworks Inc. and Eolas Technologies Inc.

        Microsoft estimates it will incur additional expenses of up to $950 million for remaining antitrust claims—a strong hint that settlement talks with RealNetworks and Burst.com have started—but that figure does not include a $521 million patent infringement verdict won by Eolas for technology used in the Internet Explorer browser.

        /zimages/2/28571.gifClick here to read more about the ongoing Eolas patent fight.

        Microsoft spokesperson Jim Desler confirmed the $950 million estimate related to antitrust disputes only, but he declined to say if settlement talks had started with RealNetworks and Burst.com.

        “We never discuss negotiations or settlements. I have no comment on who we are or arent talking to,” Desler said, pointing out that the record fine handed down by the European Commission in March has already been paid and is being held in escrow until Microsofts appeal is decided.

        Seattle-based RealNetworks has accused Microsoft of “predatory action over a period of years” and is claiming about $1 billion in lost revenue and business. The case centers around Microsofts Windows Media Player, which is embedded in the Windows operating system.

        The Burst.com case has a mix of antitrust and intellectual property claims. Burst filed suit in June 2002, accusing Microsoft of developing its own multimedia software for moving audio and video more quickly over the Internet after discussing the technology for months with Burst. The company is also claiming theft and anti-competitive behavior by Microsoft.

        Desler said the outstanding antitrust cases also include consumer class action suits in Iowa and Nebraska and “two or three other states” in various stages of the legal process.

        Analysts say they are not surprised by the rapid pace of big-money settlements coming out of Microsoft. “Microsoft has been moving quickly to bury the hatchet and settle these suits, even with the most bitter rivals,” said The Yankee Groups Laura DiDio.

        “If you look at Microsofts strategy the last one-and-a-half to two years, it is settle, settle, settle. They have that $60 billion war chest sitting there and theyre willing to spend it to get rid of problem cases. If Microsoft could settle with hated competitors like Sun and Novell, they can settle anything with anyone,” DiDio said.

        /zimages/2/28571.gifFor more on Microsofts settlement with Sun, click here.

        Rob Helm, director of research at Directions on Microsoft, said the strategy to settle the patent infringement cases could be traced back to last years hiring of former IBM executive Marshall Phelps as corporate vice president and deputy general counsel for intellectual property.

        “Phelps was hired to get Microsofts IP house in order and were seeing the results of his work here,” Helm said. “I suspect theyre already in settlement talks with both RealNetworks and Burst. Its just a matter of finding the right dollar amount and the right patent swap.”

        Yankee Groups DiDio agreed. “If you listen to the rhetoric coming out of Redmond, its clear they are moving away from fighting these cases and thinking in terms of concessions. Theyre publicly trying to be a kindler, gentler Microsoft.”

        /zimages/2/28571.gifCheck out eWEEK.coms for Microsoft and Windows news, views and analysis.

        Ryan Naraine

        MOST POPULAR ARTICLES

        Big Data and Analytics

        Alteryx’s Suresh Vittal on the Democratization of...

        James Maguire - May 31, 2022 0
        I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
        Read more
        Cybersecurity

        Visa’s Michael Jabbara on Cybersecurity and Digital...

        James Maguire - May 17, 2022 0
        I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
        Read more
        Applications

        Cisco’s Thimaya Subaiya on Customer Experience in...

        James Maguire - May 10, 2022 0
        I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
        Read more
        Big Data and Analytics

        GoodData CEO Roman Stanek on Business Intelligence...

        James Maguire - May 4, 2022 0
        I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
        Read more
        Cloud

        Yotascale CEO Asim Razzaq on Controlling Multicloud...

        James Maguire - May 5, 2022 0
        Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2022 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

        ×