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Uniloc Loses Bid to Restore $388 Million Microsoft Patent Award

Uniloc USA Inc. lost its bid to have an appeals court reinstate a $388 million patent damages award from Microsoft Corp.

The U.S. Court of Appeals for the Federal Circuit in Washington D.C. yesterday denied Uniloc’s request.

“Unless either side seeks to appeal to the U.S. Supreme Court, the next step in this case is for the matter to be listed for a retrial on damages,” IMF Australia Ltd. (IMF), an Australian litigation funder, said today in a statement to the country’s stock exchange.

Microsoft, based in Redmond, Washington, infringed a patent on technology used to deter piracy, the appeals court had ruled in January, overturning a U.S. District Judge’s decision to throw out the 2009 verdict. The appeals court had ordered a retrial on damages, saying the lower-court verdict of $388 million was “fundamentally tainted by the use of a legally inadequate methodology.”

The award was the third-largest jury verdict in 2009 and the second-biggest patent verdict, behind a $1.67 billion award that Johnson & Johnson won against Abbott Laboratories, according to Bloomberg data.

The case is Uniloc USA v. Microsoft Corp. (MSFT), 10-1035, U.S. Court of Appeals for the Federal Circuit (Washington). The lower court case is Uniloc USA Inc. v. Microsoft Corp., 03cv440, U.S. District Court, District of Rhode Island (Providence).

To contact the reporter on this story: Joe Schneider in Sydney at jschneider5@bloomberg.net

To contact the editor responsible for this story: Douglas Wong at dwong19@bloomberg.net

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