AT&T, Microsoft take patent battle to US Supreme Court

WASHINGTON: Microsoft, backed by the US government and heavyweight corporations, has taken its patent battle with telecommunications giant AT&T to the Supreme Court, in a case that has wide implications for US firms doing business abroad.

Appealing the case to the Supreme Court on Wednesday, Microsoft contended that software code is not a component under the 1984 law.

It also argued that copying software for overseas sales is not the same as supplying software.

The nine Supreme Court justices heard oral arguments in the case that hinges on whether US patent law can be extended to protect US-patented software code sold overseas by a US company or sent abroad to be used in products manufactured overseas.

In 2001 AT&T sued Microsoft for violating its patent in using its voice-recognition software in its Windows operating system, which runs more than 90 per cent of the world's personal computers.

Three years later the two companies reached a partial settlement out of court, with Microsoft paying an undisclosed amount to AT&T for putting the software on US-made and distributed products.

But AT&T pursued further damages claiming that Microsoft also violated its patent by including code for the software on Windows master disks it provided software and computer manufacturers abroad.

AT&T said Microsoft provided the AT&T software to foreign computer makers on golden master disks and in electronic transmissions.

The computer makers copy the software and install copies on their PCs.