Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Foreign-Made Copies of Software Do Not Infringe Patent for Software-Implemented Invention: The Supreme Court's Decision in Microsoft Corp. v. AT&T Corp.

By Dervis Magistre
June 28, 2007

Can a company skirt infringement of a U.S. patent for a software-enabled computer by sending a master software disk from the United States to a non-U.S. country where computers are loaded with installation disks generated from the master disk, but are not loaded with the master disk itself? In Microsoft Corp. v. AT&T Corp., 550 U.S. ____, 127 S.Ct. 1746 (2007), a highly anticipated decision with potentially significant ramifications for the enforcement of software-based patents, the Supreme Court answered 'yes.'

With Justice Ruth Bader Ginsburg writing for a 7-1 majority, the Court reversed the Federal Circuit's ruling in favor of patentee AT&T. The statute at issue, 35 USC '271(f), extends, in limited circumstances, the reach of U.S. patent law to activities in non-US countries. Under this statute, a patent is infringed when one 'supplies … from the United States' a patented invention's 'components' for 'combination' abroad. The AT&T patent at issue, U.S. Reissue Patent No. 32,580, is for an invention with two components: a computer and its speech-processing software. According to the Court, Microsoft's Windows operating system 'has the potential to infringe AT&T's patent, because Windows incorporates software code that, when installed, enables a computer to process speech in the manner claimed by that patent.'

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.