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Edition: U.S. Article Comments (1) Follow Reuters Facebook Twitter RSS YouTube Read Alleged Weiner nude photo released by radio hosts 12:55am EDT Citi says hackers access bank card data 7:17am EDT Record exports temper slowdown fears 11:30am EDT Regulators pressuring banks after Citi data breach 11:01am EDT Taxes on the menu in debt-reduction talks 3:25am EDT Discussed 75 ”The world is getting warmer”: Romney 70 Moody’s sounds alarm over U.S. debt limit and deficits 68 U.S. debt default unimaginable, creditors say Watched Bodypainters apply their skill Mon, Jul 19 2010 Obama leads Republican rivals in Presidential poll 9:30am EDT Four-year-old takes art world by storm Mon, Jun 6 2011 small business Talent search favors tech giants Recruiters say the Web 2.0 hiring boom, which counters nationwide unemployment above 9 percent, shows no sign of abating. And startups are having to be very creative to lure potential hires away from Google and other tech giants. Full Article Silicon Valley recruiter: "Everyone's desperate" 5 reasons to join a startup after graduating Microsoft loses U.S. top court case on patent Tweet Share this Email Print Related News UPDATE 2-Jurors screened in Rambus trial vs Micron, Hynix Wed, Jun 8 2011 Rambus trial vs Micron, Hynix set to begin Wed, Jun 8 2011 UPDATE 1-Siemens sues Samsung, LG on LED patent breaches Mon, Jun 6 2011 Request to revisit Rambus rulings "likely": lawyer Fri, Jun 3 2011 Samsung files LCD patent suit against AU Optronics Wed, Jun 1 2011 Analysis & Opinion Tech wrap: EBay sues Google in mobile payment war “Lean Startup” evangelist Eric Ries is just getting started Related Topics Technology » Media » A worker adjusts a logo on the Microsoft stand at the CeBIT computer fair in Hanover February 27, 2011. Credit: Reuters/Tobias Schwarz By James Vicini WASHINGTON | Thu Jun 9, 2011 11:26am EDT WASHINGTON (Reuters) - The U.S. Supreme Court ruled against Microsoft Corp on Thursday, rejecting its appeal of a record $290 million jury verdict for infringing a small Canadian software firm's patent. The justices unanimously upheld a U.S. appeals court ruling that went against the world's largest software company in its legal battle with Toronto-based i4i. The high court rejected Microsoft's argument to adopt a lower standard to replace the long-standing requirement that a defendant in a patent infringement case prove by clear and convincing evidence that a plaintiff's patent is invalid. Redmond, Washington-based Microsoft argued that a lower standard of proof involving a "preponderance of the evidence" would make some patents more vulnerable to legal challenge while promoting innovation and competition. Justice Sonia Sotomayor said the court rejected Microsoft's contention that a defendant need only persuade a jury of a patent invalidity defense by a preponderance of the evidence. When the U.S. Congress has prescribed the governing standard of proof, its choice generally controls, she said in the 20-page opinion. The Obama administration and i4i opposed Microsoft's position and said Congress had accepted the standard in effect for at least the past 28 years, that it was correct, and that it should be upheld by the Supreme Court. I4i said Microsoft sought a radical change in patent law and that any change should come from Congress, which has been considering patent legislation. The legal battle began in 2007 when i4i sued Microsoft. A federal jury awarded $290 million to i4i after finding that Microsoft, in 2003 and 2007 versions of Word, its word processing application, had infringed i4i's patent relating to text manipulation software. A U.S. appeals court upheld the award, and the U.S. Patent and Trademark Office upheld the validity of the i4i patent. Microsoft continued to dispute those decisions, but removed the contested features from its current software. In appealing to the Supreme Court, Microsoft said it wanted a new trial. But the justices ruled that the appeals court was correct. Microsoft has said it is the largest patent infringement verdict ever affirmed on appeal. UP TO CONGRESS TO CHANGE STANDARD OF PROOF Sotomayor said the court also rejected Microsoft's argument that a preponderance standard must at least apply where the evidence before the factfinder was not before the Patent and Trademark Office during the examination process. She said the court was not judging the wisdom of the clear-and-convincing-evidence standard that Congress adopted. During nearly 30 years the standard has been used, Sotomayor said, Congress has often amended the patent laws, but apparently never considered any proposal to lower the standard of proof. Sotomayor said Congress has left the standard in place, despite criticism of it from the federal government and from outside the government. Any change remains up to Congress, she concluded. Google Inc, Yahoo Inc and trade groups such as the Computer & Communications Industry Association supported Microsoft, while Bayer AG, 3M Co and groups representing biotechnology companies and pharmaceutical manufacturers backed i4i. The case was decided by eight of the nine Supreme Court members. Chief Justice John Roberts, who owns Microsoft stock, recused himself from the case. The Supreme Court case is Microsoft Corp v. i4i Limited Partnership and Infrastructures for Information Inc, No. 10-290. (Reporting by James Vicini; Editing by Gerald E. McCormick, Ted Kerr and John Wallace) Technology Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (1) bobbobwhite wrote: Only $290 Mil? That’s lunch money for Mr. Softie. Must be a precedent it wants to prevent to get pissy over pocket change. Jun 09, 2011 10:36am EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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