Australian inventor wins $537 million from Microsoft in patent case

An Australian expatriate living in Orange County California has won a $537 million patent case against Microsoft after a federal court jury in Rhode Island declared the company stole his technology.

Ric Richardson, founder of technology security group Uniloc, sued the software giant in 2003, accusing it of violating a patent covering Uniloc’s anti-piracy software.

Uniloc claimed that Microsoft had earned itself billions by using the stolen technology in popular programs such as MS Office, and even the Windows XP operating system.

The jury found Microsoft violated the patent and ordered the software giant to pay Uniloc $US388 million – the fifth-highest patent violation payment in history.

While Richardson has since stepped down from his position as director of Uniloc, it is almost certain that he will receive a substantial portion of the payment as one of the company’s larger shareholders.

He has not spoken widely to the media, but announced the win through his personal Twitter account. “Dear fiends (sic) and family… it’s official. We won the case with Microsoft… and a $388 mill verdict.”

But the case is still awaiting a detailed decision from a judge, who could even triple the amount awarded.

The technology in dispute was developed by Richardson in the early 1990s while working as a sound equipment manager for musical artists such as INXS and John Denver.

The job required him to buy expensive programming software, but Richardson became frustrated at the inability to try the software before a purchase.

He patented a technology that allows makers to create versions of software that users can try before they buy. When the user buys the full version of the software, they receive a key-code that unlocks the software’s full capabilities.

Richardson showed the patented technology to Microsoft in 1993, but instead of licensing the software, the company developed its own almost identical version. The technology was incorporated into products during the late 1990s.

Microsoft has defended its own version of the software, saying that it will seek to have the verdict overturned. Microsoft won an initial victory in the case in 2006, but this decision was overturned by a court in favour of a trial by jury. 

Richardson has a long history of patenting technology, including inventions that gives users the ability to swap batteries on laptop computers without turning them off, and a cord used on sunglasses to keep them around a wearer’s neck.

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