Eolas had claimed that Microsoft's internet browser
Internet Explorer violated a patent held by it. The dispute centred
on the embedding of items within a web page. Microsoft has since
changed that element of its browser.
Eolas won $521 million in 2003 but Microsoft appealed and won
the right to a retrial. It said that it expected the damages to be
changed.
The patent involved is part-owned by the University of
California, which will receive part of Microsoft's payout. Eolas
has written to its shareholders saying that it believes the payout
will be worth $60 to $72 per share to them. It is not known how
many shareholders the privately-held Eolas has.
"The litigation with Microsoft has taken a great deal of
management time and effort and significant financial resources,"
said Mark Swords, Eolas's chief operating officer in his letter to
shareholders.
"We are very pleased that we now can focus our resources on
commercializing our existing intellectual property portfolio and
developing new fundamental technologies," he said. "During the next
several weeks, the management team will complete planning the Eolas
post-litigation strategy and budget."
In the court case over the patent Microsoft claimed that the
technology covered by the patent had existed before the patent did.
The US Patent and Trademarks Office said earlier this year that it
would reopen an investigation into the patent and whether or not it
is valid.
