Small IT firm i4i wins US$290 million from Microsoft for patent infringement

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Microsoft ordered to change Word software or stop selling it because of custom XML tool technology

For Canadian small business owners that do not believe intellectual property protection to be one of the most crucial business resources available, the David-and-Goliath story of a small Toronto tech firm may change their minds.

The company, i4i Inc., won a lawsuit this week against technology giant Microsoft, and will now be awarded US$290 million for patent violation. The lawsuit dates back to 2007, when i4i sued Microsoft for using the company's patented custom XML tags in its Word software.

The United States Court of Appeals ruled that Microsoft's use of the tool caused significant market share loss for i4i, forcing the company to change its business strategy. Microsoft must now award i4i money for the patent infringement, and remove the tool from the 2007 Word software by January 11 - or stop selling the software entirely.

Michel Vulpe, i4i founder and co-inventor of the patented technology, said that "i4i is especially pleased with the court's decision to uphold the injunction, an important step in protecting the property rights of small inventors."

This news demonstrates the importance of intellectual property rights, for even the smallest of small businesses. Companies looking for business resources about patents and other intellectual property measures should visit the Industry Canada website for more information.




 

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