The University and Eolas Technologies sued Microsoft in 1999, claiming that Internet Explorer was infringing on a patent covering a method that allows web browsers to access interactive application programs.
The patent, issued to the University in 1998, has been licensed exclusively to Eolas since 1994 but, according to Eolas' lawyer Martin Lueck, "Facing competition from Netscape Navigator in the mid-1990s, Microsoft updated its Explorer browser by using Eolas' technology and subsequently bundled it with all of its Windows operating systems since 1995".
The jury clearly agreed with him, and awarded $520.6 million.
James Holst, the university's general counsel commented, "This verdict is a significant landmark in defining and protecting internet technology whose benefits literally reach the whole world".
He added, "As a public institution that reinvests its licensing revenue in its larger research mission, we are gratified by the jury's recognition that UC and Eolas must be fairly compensated for use of its patented technology."
Microsoft admitted its disappointment in a statement, but stressed that the award was significantly less than the sum of approximately $1.2 billion that Eolas was seeking. The company confirmed that it would be appealing the ruling and added:
"It's important to note that the court has already rejected claims that there was any wilful infringement. We believe the evidence will ultimately show that there was no infringement of any kind, and that the accused feature in our browser technology was developed by our own engineers based on pre-existing Microsoft technology."
