Alcatel-Lucent appeals loss over MP3 patents

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An appeals court argument over the patents relating to the MP3 file format between Alcatel-Lucent and Microsoft is still continuing, even though a lower court jury overturned a previous judgement that saw Microsoft paying a $1.5 billion award to Alcatel-Lucent.

According to Reuters, the arguments mainly came from a 1989 agreement between AT&T and Fraunhofer Gesellschaft – the co-developers of the MP3 format. Microsoft has said that it had licensed the technology from Fraunhofer, but Alcatel-Lucent says it could not legally licensed since it was done by Bell Labs, now a research arm at the company.

The case caused an uproar when a jury in San Diego ruled that Microsoft infringed two patents and awarded a $1.5 billion fee to Alcatel-Lucent; but that was overturned when a District Judge disagreed with the jury – saying that Microsoft had licensed one patent and it had not violated the other.