MESSAGE
DATE | 2003-09-16 |
FROM | Ruben I Safir
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SUBJECT | Subject: [hangout] Pluggin Patents Upheld - Threatens Internet
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September 17, 2003 Setback for Microsoft Ripples Through the World Wide Web By STEVE LOHR
Watching Microsoft be sued - by the federal government, states, class-action plaintiffs and aggrieved rivals - has become a common pastime in the computer industry. The enjoyment of the industry spectators is usually all the greater if the world's largest software company loses, and loses big, in court.
Last month, Microsoft suffered a stinging setback in a patent-infringement case when a federal jury awarded $521 million to a former University of California researcher. But this time, the rest of the industry is not smiling.
To comply with the court ruling, Microsoft has informed a handful of software companies and the World Wide Web Consortium, the leading Web standards organization, that soon it will probably make changes in its Internet browser, the on-ramp to the Web for 90 percent of computer users. The impact, according to industry executives and Web experts, could be disruptive and costly for other Internet software companies and big commercial Web sites.
``The ripple effect of this could be very dramatic,'' said Daniel Weitzner, director of technology and society activities at the Web consortium. ``What you have here is the adjudication of a private lawsuit between two companies, and no one thought about the rest of the Web.''
The technology in question enables a browser to summon programs automatically over the Internet. The programs that use this technology include those for playing music, videos and animations and exchanging documents over the Internet. The technology was not only used by Microsoft in its Internet Explorer browsing software, but has become a standard feature in the software for coding Web pages, called hypertext markup language, that has been ratified by the Web consortium.
The court ruling and its potential impact, according to Mr. Weitzner, points to the larger issue of the need to keep the basic software of the Web free of patent royalties.
The consortium, which includes representatives from the major software companies and many university researchers, adopted a royalty-free patent policy in May after three years of debate. ``If you try to charge individual companies for patents on Web standards, you risk balkanizing the Web and breaking it,'' Mr. Weitzner said.
Indeed, Microsoft and I.B.M.coei are expected to emphasize their commitment to the royalty-free patent approach to certain security and transaction software for Web services, an emerging beyond-the-browser technology that supports machine-to-machine communication over the Internet. The two companies, which are often rivals, are demonstrating their cooperation on Web services at an event today in New York where Bill Gates, the Microsoft chairman, and Steven Mills, a senior vice president in charge of I.B.M.'s software business, will act as hosts.
Last month's court decision came in a suit filed in 1999, well before the recent industry consensus on keeping the Web's basic technology open and free of royalties. The plaintiffs' allegation in the suit was that Microsoft illegally appropriated their technology, so it was not Microsoft's to contribute to an open standard.
A federal jury in Chicago found that Microsoft's technology infringed on work done by Michael Doyle, the founder of Eolas Technologies in Chicago, while he was an adjunct professor at the University of California at San Francisco. The University of California is the other plaintiff in the suit.
In the trial, Microsoft asserted that its technology, called Active X, was developed internally and tried to show that similar research predated Mr. Doyle's work. The jury was not convinced.
Microsoft has vowed to appeal the ruling, but the appeals process could take 18 months or more. In the meantime, the court ruling says that Microsoft should pay Eolas $1.47 for every copy of the Windows operating system containing the browsing software that is shipped. Microsoft ships more than 100 million copies of Windows a year.
``It would not be prudent for us to sit back and let the meter run by just having the legal process play out,'' said Michael Wallent, a general manager in Microsoft's Windows division who testified in the Eolas case.
The jury's decided on its award on Aug. 11; the next day, Mr. Wallent called Tim Berners-Lee, the director of the Web consortium, to say that the action meant Microsoft might well have to change its browser. He said the company wanted to work with the Web community to make sure any changes it carried out would cause as little trouble as possible for the rest of the industry.
The consortium organized a four-hour meeting on Aug. 19 at the San Francisco offices of Macromedia, a producer of software for showing animations on the Web. Those invited were the leading producers of multimedia Internet and Java applications, including Real Networkscoei, Sun Microsystemscoei, Apple Computercoei and Adobecoei, as well as Macromediacoei.
Microsoft proposed three possible design tweaks to its browsing software to ensure compliance with the court ruling. These include having personal computer users approve a ``click to proceed'' box to run multimedia programs from the browser and modifications that other software companies and Web page designers can make. All would require some adjustments from companies, executives say, but should not affect ordinary PC users significantly.
``We're working to make sure that whatever we do does not have a big impact on users or the industry,'' Mr. Wallent said.
Other industry executives seem to agree. ``This has the potential to be broad in scope,'' said Al Ramadan, an executive vice president at Macromedia. ``If anything has to change, we are confident we can manage around the problem with some straightforward fixes.''
For their part, the Eolas plaintiffs are keeping the pressure on. Every day that Microsoft ships Windows with Internet Explorer, the company's potential liability increases. ``Yes, Microsoft has continuing liability, it continues to infringe,'' said Martin R. Lueck, a partner in Robins, Kaplan, Miller & Ciresi, who represents Eolas. ``Microsoft gets paid for Windows. Why shouldn't Eolas get paid for its invention.''
There are, of course, other options besides a forced change in the Microsoft browser and a continuing legal fight. As is so often the case in legal disputes, the fierce stands of high-minded principle on each side tend to be swept away quickly if the settlement price is agreeable to both sides. In the last year or so, Microsoft has settled a number of private suits.
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