Stories
Slash Boxes
Comments

News for nerds, stuff that matters

Slashdot Log In

Log In

Create Account  |  Retrieve Password

Eolas vs. Microsoft Lawsuit Settled and Sealed

Posted by Zonk on Fri Aug 31, 2007 08:35 AM
from the another-biggie-comes-to-a-close dept.
theodp writes "The Seattle P-I's Todd Bishop reports that Microsoft has settled its 8-year-old web browser plug-in patent dispute with Eolas. The spat begat the click-to-activate Web after Microsoft was slapped with a $500+ million patent infringement judgement. Neither Eolas nor Microsoft will be disclosing terms of the deal, although Eolas told investors to expect a dividend (PDF). Microsoft didn't say whether or how the settlement would affect its approach to the underlying technology in IE or other programs. Just last month, the USPTO issued a non-final rejection of the patent's claims, citing the work of Pei-Yuan Wei as prior art."
+ -
story

Related Stories

[+] USPTO Examiner Rejected 1-Click Claims As "Obvious" 195 comments
theodp writes "Faced with a duly unimpressed USPTO examiner who rejected its new 1-Click patent claims as 'obvious' and 'old and well known,' Amazon has taken the unusual step of requesting an Oral Appeal to plead its case. And in what might be interpreted by some as an old-fashioned stalling tactic, the e-tailer has also canceled and refiled its 1-Click claims in a continuation application. As it touted the novelty of 1-Click to Congress last spring, Amazon kept the examiner's rejection under its hat, insisting that 'still no [1-Click] prior art has surfaced.' The Judiciary Committee hearing this testimony included Rick Boucher (VA) and Howard Berman (CA), both recipients of campaign contributions from a PAC funded by 1-Click inventor Jeff Bezos, other Amazon execs, and their families."
[+] 'Eolas' Browser Plug-in Patent Case Rises Again 107 comments
eldavojohn writes "A legal battle that has been around since 1999 and seemingly ended in 2005 now rears its head again. In a confusing move, the USPTO 'reissued a Microsoft patent last week covering the same concepts outlined in the Eolas patent and with wording mirroring that of the Eolas patent. With both companies holding identical patents, the USPTO will now play King Solomon and decide which parent gets custody of the baby.' Both the Microsoft & Eolas patents are available online."
[+] Linux: Ballmer Suggests Linux Distros Will Soon Have to Pay Up 520 comments
An anonymous reader writes "Via Groklaw comes comments from Microsoft's Steve Ballmer at a UK event, in which the company once again threatens Linux distributions that haven't signed up with their program. '"People who use Red Hat, at least with respect to our intellectual property, in a sense have an obligation to compensate us," Ballmer said last week ... Ballmer praised Novell at the UK event for valuing intellectual property, and suggested that open source vendors will be forced to strike similar deals with other patent holders. He predicted that firms like Eolas will soon come after open source vendors or users. Microsoft paid $521m to settle a patent claim by Eolas in August.'"
This discussion has been archived. No new comments can be posted.
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
 Full
 Abbreviated
 Hidden
More
Loading... please wait.
  • Excellent (Score:4, Insightful)

    by _Shorty-dammit (555739) on Friday August 31 2007, @08:43AM (#20423279)
    Sounds as though the end is nigh for the useless extra clicks. Eolas deserves a smack. Too bad they're getting rewarded.
    • Re: (Score:1, Insightful)

      by Anonymous Coward
      How does Eolas deserve a smack for this? The entire idea of software patents encourages this sort of behavior. If anyone deserves a smack it is whoever has the power to eliminate software and business practice patents and fails to do so.
      • Bah, I can choose whether or not to do bad things. The people running Eolas are no different. Love how you posted anonymously, too, btw. If you're going to say anything, stand behind it. Hidin' is for wussies.
    • I have one thing to complain. While you have to click to play a video you already clicked, the annoying web adds do play instantly! :-S

      The world isn't fair...
  • what????? (Score:4, Insightful)

    by superwiz (655733) on Friday August 31 2007, @08:45AM (#20423297) Journal
    Two public companies reach an agreement and the terms are not released to shareholders? What is this? Science fiction?
    • Re:what????? (Score:4, Informative)

      by EveryNickIsTaken (1054794) on Friday August 31 2007, @08:55AM (#20423387)
      Wait for the next quarter's report when they'll have to disclose it. SEC rules are fun.
      • Re: (Score:3, Informative)

        "Eolas is privately held, and the letter does not disclose the total number of shares outstanding in the company."

        So no disclosure from Eolas. It remains to be seen how effectively ms can hide the terms and dollar amount in their quarterly reports.
        • Re: (Score:2, Interesting)

          don't know the exact law/act/SEC rule, but my thoughts are MS will be able to bury it under a cost of doing business line item. especially one that's been used to pay fines/compliance for any anti-trust happiness they've been involved with.
    • Public companies generally are required to disclose settlement terms if they are material.

      Last quarter Microsoft's gross revenues were somewhere north of $14 billion. If they paid 500 million to Eolas (and presumably it was less than that, given the verdict of $521 million and the fact of a pending reexam that might kill the patent), that's way less than 5% of their revenues for one quarter. Most securities experts would say that isn't material.

      And the other terms of the agreement probably amount to sayin
  • The "dividends" part of this topic gives away the problem. A more mercenary person would now be slapping themselves for not investing in Eolas - and thus contributing to the problem and making money out of it.

    There's one thing (another story) with suing over a frivolous patent if you make the product, but this company only exists to take money off another and give it to people who've done no work whatsoever.

    Simple. Freeze the shares of a company who files an IP suit over a patent they're not using. If a
    • Re:Change in law (Score:4, Insightful)

      by giafly (926567) on Friday August 31 2007, @09:50AM (#20423829)

      Simple. Freeze the shares of a company who files an IP suit over a patent they're not using.
      Dumb.
      1. Company announces it will sue and shares rise
      2. Company sues and shares are frozen at this higher price
      3. Directors get $$$$s by e.g. borrowing against the shares
      4. Profit!
  • Hurry!! (Score:4, Funny)

    by SpeedyDX (1014595) <speedyphoenix.gmail@com> on Friday August 31 2007, @09:38AM (#20423723)
    What's the ticker symbol for Eolas? I uh ... just want to check their um ... corporate history. Nothing to do with the upcoming dividend. No sirree.
  • by Alzheimers (467217) on Friday August 31 2007, @10:42AM (#20424579)
    So let me get this straight...Eolas pattented Clicking?

    And Microsoft couldn't find any prior art for a toggle switch?
    • Re:For the layman (Score:5, Informative)

      by silentben (1119141) on Friday August 31 2007, @01:27PM (#20426797) Homepage
      In a nutshell, Eolas had a patent pending for some form of integrated media into web pages. When IE supported Flash, Eolas saw this as infringement and sued Microsoft. Since then, MS designed new versions of IE to require you to click on a Flash element in order to activate it, thereby no longer being fluid. But they left a back door in that if a developer included the Flash object by having a separate javascript file write it to the page, then this would not require clicking to activate it (enter SWFObject as the lay-developers easy way out). I just hope that this settlement included some exchange of words that discouraged Eolas from pursuing similar charges against Mozilla and other browser developers. It is bad enough they had effected change with THIS frivolous lawsuit.
    • ...they patented NOT clicking.
  • How is it in the public interest for this agreement to be sealed? Any suit that goes on, using public resources along the way, should not be eligible for this "feature" of settlement, i.e. "sealing" the settlement agreement. The public has the right to know the details.
      • Re: (Score:2, Insightful)

        by Anonymous Coward
        Now that Microsoft has settled, who is next on the list? It may well be Opera or the Mozilla foundation. Beware, more lawsuits are probably coming.
        • That was my initial thought.
          The question really hinges on whether the patent remains valid given that Microsoft chose to settle, I hope someone better versed in US patent law could give us some sort of answer.

          (although uninformed speculation may be more fun... :) )
          • It probably also hinges on the terms of the settlement, which are of course, unknown.
            • by Ajehals (947354) <andyhalsall&ictsc,com> on Friday August 31 2007, @10:30AM (#20424389) Homepage Journal
              Can I ask why you would come to that conclusion? It was the only one I ignored using the following reasoning:

              The process to invalidate the patent was clearly initiated, surely it is in the public interest to remove invalid patents, regardless of the outcome of any particular case. Its not like the settlement would establish any sort of precedent, never mind the fact that Microsoft or Eolas's statements on the matter shouldn't have any bearing on whether the patent is valid or not, especially since there is an established method for testing the validity of patents.

              I may be being naive of course.

        • Won't be Opera. They've already put the "workaround" to the patent in Opera.
    • Oh, that's right, I use a good web browser (Firefox|Safari|Opera).
      Note that Opera still requires a click to activate a Flash control.
    • I don;t think anyone around here would be able to distinguish between the two fighters.