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Edition: U.S. Article Comments (5) Save Email Print Reprints Most Popular Most Shared Banks with political ties got bailouts, study shows 21 Dec 2009 Obama may delay vacation over healthcare 11:29am EST Iran's Ahmadinejad dismisses West's year-end deadline 3:14pm EST Drug tests awaited on Brittany Murphy death | Video 21 Dec 2009 Nestle made misleading drink health claims: FDA 11:13am EST Banks with political ties got bailouts, study shows 21 Dec 2009 U.S. mortgage industry grapples with new disclosures 7:58am EST The brain may feel other people's pain 21 Dec 2009 Japanese man takes video game character as wife 20 Dec 2009 Iran's Ahmadinejad dismisses West's year-end deadline 3:14pm EST Pictures Pictures of the year: Technology A look at the year's best science and technology photos. Slideshow Microsoft loses Word appeal, will adjust program SEATTLE Tue Dec 22, 2009 2:28pm EST Related News China orders Microsoft to halt some Windows sales Wed, Nov 18 2009 Judges in Microsoft-i4i case question damages Thu, Sep 24 2009 U.S. appeals court stays Microsoft Word injunction Thu, Sep 3 2009 SEATTLE (Reuters) - Microsoft Corp said on Tuesday it will tweak its Word application to remove a feature judged to be a breach of patent, ensuring that it will be able to continue selling one of its most widely used programs. Technology The world's largest software company made the announcement shortly after a U.S. court of appeals upheld a $290 million jury verdict against it for infringing a patent held by a small Canadian software firm. The court also affirmed an injunction that prevents Microsoft from selling versions of its Word program which contain the offending software, set to take effect January 11, 2010. Older versions of Word are not affected. Microsoft said it is taking steps to remove the feature from Microsoft Word 2007 and Microsoft Office 2007 put on sale from that date. The disputed patent feature relates to the use of XML, or extensible markup language, used for manipulating text, in the 2007 versions of Word. Microsoft described it on Tuesday as a "little-used feature". However, Microsoft did not rule out further appeals. "While we are moving quickly to address the injunction issue, we are also considering our legal options," said Kevin Kutz, a Microsoft spokesman. He said that could include a request for a rehearing by a full panel of judges at the appeals court, or a request for a review by the U.S. Supreme Court. I4i, the Toronto-based software company which owns the infringed patent, welcomed Tuesday's ruling. "I4i is especially pleased with the court's decision to uphold the injunction, an important step in protecting the property rights of small inventors," said Michel Vulpe, founder and co-inventor of i4i, in a statement. END OF CASE IN SIGHT The ruling -- by the United States Court of Appeals for the Federal Circuit, which handles many patent and trademark cases -- may signal the end-game of a long-running dispute between Microsoft and Toronto-based i4i Ltd. On August 12, a jury in a federal U.S. district court in Texas ruled in favor of i4i against Microsoft, for infringing the XML patent in the 2003 and 2007 versions of Word. The jury slapped more than $290 million in damages on Microsoft and the court granted i4i's motion for an injunction preventing Microsoft from selling versions of Word that contain the disputed patent technology. That injunction was stayed while Microsoft appealed the case with the Court of Appeals, but will now go into effect on January 11. Microsoft shares were up 0.9 percent at $30.79 on Nasdaq. The case is: i4i Limited Partnership and Infrastructures for Information Inc v. Microsoft Corp, an appeal from the U.S. District Court for the Eastern District of Texas in case no. 07-CV-113. (Reporting by Bill Rigby, editing by Matthew Lewis and Gerald E. McCormick) Technology Comments See All Comments (5) | Post Comment Dec 22, 2009 Hooray for the little guy… Large companies need to remember that innovation often springs-forth from small companies, and pay for that innovation! Handicapper Report As Abusive Dec 22, 2009 Remember that GM is guru to MS. Love Bill Gates, but sharks have been eating minnows with out a fishing license. Lower OS price and be fair, is all. bobby99 BOBBY99 Report As Abusive Dec 22, 2009 Remember that GM is guru to MS. Love Bill Gates, but sharks have been eating minnows with out a fishing license. Lower OS price and be fair, is all. bobby99 BOBBY99 Report As Abusive Dec 22, 2009 Microsoft…. King of the Pirates qualsdad Report As Abusive Dec 22, 2009 i4i’s XML product “x4o” depends on Microsoft Word. Check it out on their website at i4i.com. It seems i4i is really a parasite on Microsoft in this case. While Microsoft also engages in questionable business practices, it’s hard to argue in favor of i4i here either. This is especially if you take into account that the technology in question involves the encoding of data in the program itself — which 99% of all users don’t care about, and wouldn’t affect the sales of i4i’s product anyway. The painful truth is i4i is simply looking to take advantage of the U.S. patent system to get rich. In this case, the defendant was Microsoft, but in the next case they could go after anybody who has written a program which they can show utilizes their method for encoding data, even if it doesn’t do anything remotely similar to their own products (and wouldn’t be a threat to their business). That’s the glory of the software patent, they don’t usually do what patents are supposed to do — they’re often just a device to get rich at the expense of some other person’s work. spizzbool Report As Abusive See All Comments (5) Add a Comment More from Reuters Microsoft loses Word appeal, will adjust program SEATTLE (Reuters) - Microsoft Corp said on Tuesday it will tweak its Word application to remove a feature judged to be a breach of patent, ensuring that it will be able to continue selling one of its most widely used programs. Mexican relatives die in likely revenge attack U.S. military defends pregnancy punishment in Iraq U.S. home sales bolster economic growth prospects Health bill clears second Senate hurdle | Video "Youth Depression" hard on retailers » More Top News Health reform inches closer Democrats are on the verge of passing landmark legislation by Christmas, with only one more hurdle remaining. Full Article | Video Winners and losers in Senate health bill Follow healthcare stocks Healthcare Reform Are you pregant? Sir! No, Sir! There are some 115,000 U.S. troops in Iraq -- and one commander wants to make sure his soldiers don't multiply. Full Article U.N. urges patience in Iraq progress Is Afghanistan harder than Iraq? 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