San Francisco - A federal appeals court has overturned a $1.5 billion damages award that Microsoft (NASD: MSFT) had been ordered to pay France's Alcatel-Lucent over patents related to MP3 technology, CNET News.com reported.

Microsoft called the ruling "a victory for consumers of digital music and a triumph for common sense in the patent system," while Alcatel-Lucent told CNET it is reviewing its options to determine its next step.

Some had speculated that, had Alcatel-Lucent been successful, it could have opened up many other related technologies to new patent claims.

Related Links:
http://news.cnet.com/8301-10805_3-10051243-75.html

http://snipurl.com/3vfr4 (DMW previous coverage)