Eolas Reprieve Leads Legal News

In a rare move, regulators have agreed to reexamine a controversial patent covering Web-browsing technology, delaying the enforcement of a patent infringement verdict that could force Microsoft to overhaul Internet Explorer (IE) and cause significant headaches for Web sites. Although Microsoft hailed the development as a victory, the case is not over—the verdict remains in place but is suspended until a potentially long and complicated appeals process is completed.

In other legal news, a class-action antitrust lawsuit filed on behalf of Minnesota consumers went to trial, Microsoft and AT&T settled a patent infringement suit over speech technology, and the company joined with several other ISPs to file suit against spammers under a new U.S. law.

Eolas Patent Under Review

A patent granted to Eolas Technologies and the University of California in 1998 covers the ability of a Web browser to automatically launch interactive elements, such as Java applets, ActiveX controls, and digital media files, embedded in Web pages. In Aug. 2003, a jury found that IE violated the patent and levied a US$520.6 million fine against Microsoft. (A judge later added another US$45 million in prejudgment interest.) Microsoft began preparing a non-infringing version of IE and briefing the Web community about the proposed changes. Meanwhile, both Microsoft and the World Wide Web Consortium (W3C) asked the United States Patent and Trademark Office (USPTO) to invalidate the patent, arguing that it stifles innovation and that the non-infringing version of IE would create significant disruptions for Web sites, requiring them to redesign their pages. (For background on the proposed changes to IE and how they would affect Web sites, see “Lawsuit Drives Browser Changes” on page 7 of the Nov. 2003 Update).