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High stakes fueling patent wars

THIS STORY APPEARED IN
Boston Articles
December 26, 2011|By Hiawatha Bray
(Page 3 of 3)

The patent suit could be the most significant Google has ever faced, because the patents not only touch upon features of Android, but also services such as Google Maps and the company’s huge location-based advertising business.

On the other hand, British Telecommunications has tasted defeat in an equally dramatic case. In 2000, the company sued America Online and other Internet service providers for violating its patent on hyperlinks, the technology that makes point-and-click Internet surfing possible. Had the company prevailed, it might have been able to demand royalties from millions of Internet users, but a federal judge dismissed the case two years later.

Microsoft Corp., whose Windows Phone 7 smartphones have failed to catch on with consumers, is also engaged in patent litigation. On Tuesday, the International Trade Commission said that Android phones made by Motorola Mobility violate a Microsoft patent. Microsoft has already reached patent settlements with Android phone makers HTC and Samsung.

James Bessen, an economist and lecturer on patents at the Boston University School of Law, said that since Google lets phone makers use Android software free of charge, “Microsoft is probably making more money from Android phones than Google is.’’

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