San Diego - A federal judge has reversed a ruling that would have forced Microsoft to pay $1.53 billion in damages to Alcatel-Lucent for infringing MP3-related patents.

Overturning a March jury decision, U.S. District Court Judge Rudi M. Brewster said on Monday that Microsoft's Windows Media Player software does not infringe a certain Alcatel-Lucent patent, while the $16 million fee Microsoft paid to license the other patent in question -- jointly owned by Alcatel-Lucent and Fraunhofer -- gave it rights to use the technology.

"Today's ruling by the judge reversing the jury's $1.52 billion verdict against Microsoft is a victory for consumers of digital music and a triumph for common sense in the patent system," the company said in a statement.

"For the hundreds of companies large and small that rely on MP3 technology, the Court's ruling clarifies that these companies have properly licensed the technology embodied in the '080 patent from its co-owner and industry recognized MP3 licensor -- Fraunhofer."

Alcatel-Lucent plans to appeal the ruling.

"We still have a strong case and we believe we will prevail on appeal," Alcatel-Lucent spokeswoman Mary Lou Ambrus told the Associated Press.

Related Links:
http://biz.yahoo.com/ap/070806/microsoft_alcatel.html?.v=4 (AP)

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