In March, after failed licensing negotiations with Barnes & Noble, Microsoft filed against the bookseller and manufacturers Foxconn and Inventec in the U.S. District Court for the Western District of Washington and with the International Trade Commission, claiming the Nook e-reader infringed on five Microsoft patents. Specifically, Microsoft alleged infringement in the way the Nook displays retrieved images, shows the status of downloaded material on a small screen, edits electronic documents and renders annotations. The trial is scheduled for February, 2011 in Washington.
This is part of Microsoft's attempt to obtain license agreements from phone and tablet manufacturers that infringe on Microsoft's expansive 60,000+ patent portfolio (See Microsoft Sues Motorola for Patent Infringement, and our Smartphone Patent War series Part 1, Part 2 and Part 3 for more on Microsoft's role in the ongoing Patent War). Microsoft's aggressive stance is making the tech industry nervous, especially in light of Microsoft's recent partnership with Nokia, another patent superpower.
Earlier this month, as a response to Microsoft's allegations, Barnes & Noble asked the Justice Department to conduct an antitrust investigation into Microsoft's business practices. In a letter to the DOJ, Barnes & Noble alleged that Microsoft has been "attempting to raise its rivals' costs in order to drive out competition and to deter innovation in mobile devices" and that "Microsoft's conduct poses serious antitrust concerns."
In retort, Microsoft filed a motion with the International Trade Commission on November 9, to compel Google to produce documents or witnesses relating to Google's possible evaluation of Barnes & Noble's allegations, namely whether Microsoft's alleged conduct has had any business effect on Android OS distribution. Microsoft hopes to show that Google remains unharmed by Microsoft's recent litigation.
As the value of exclusive patent rights afforded to inventors and assignees clashes with the need to protect market competition and consumer welfare, Microsoft may find itself once again on the defensive in an antitrust dispute.
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