Coming to software firms, a record in terms of amount slammed was create

d by the Federal authorities in February 2007, when it handed down a $1.5 billion fine on Microsoft Corp. for patent infringement (against Alcatel-Lucent). During the same month, it shelled-out another $1 billion when it lost a patent legal-war against at&t. Then there was Sun Microsystems which had to shell-out a deafening $1 billion in 2004 (against Eastman Kodak), eBay – $35 million (against Merc Exchange in 2007), Blackberry – $613 million (against RIM in 2006)… and the list including most revered names involved in the ‘litigation lottery’ goes on. Recently, Texas Republican Congressman Lamar Smith proposed the Patent Reform Act, 2007 in US Congress which suggested the ‘first to file’ system – a step to reform the system of patents just as Brad Smith, Sr. VP, General Counsel and Corporate Secretary, Microsoft Corp. asserts, “The proposed reform is most likely to create meaningful, lasting impressions by ensuring high patent quality and curbing excessive litigation and litigation abuse...” The bill is being backed by Microsoft , Intel, Apple Computers, Hewlett-Packard and other high-tech litigation-weary giants who spend millions annually in the name of patents.
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