High court hears ATT case against Microsoft
WASHINGTON — A lawyer for AT&T argued before a skeptical Supreme Court on Wednesday that Microsoft Corp. is violating one of its patents when it sends its Windows software overseas to be copied and placed on personal computers.
Microsoft acknowledged that it violated AT&T’s patent on speech encoding technology when it sold Windows in the United States, but disputes that it should be held responsible for infringement when the software is copied by foreign computer manufacturers.
Justice Stephen Breyer expressed sympathy for Microsoft Corp.’s argument, suggesting AT&T Inc. should pursue its infringement complaint in overseas markets where the copies are made.
“The whole question here is whether (the company) has to get a patent” abroad, Breyer said.
At issue in the dispute is a section of patent law that bars companies from shipping components of a patented invention overseas for assembly.
Two lower federal courts ruled in favor of AT&T. The Supreme Court is expected to decide the case by July.
AT&T’s lawyer, Seth P. Waxman, argued that the patent law “does not reach what anybody does overseas.” Instead, Waxman said, Microsoft violated the law when it sent its software from the United States to other countries to be “installed and stored in foreign computers.”
Microsoft’s lawyer, Theodore B. Olson, countered that the company’s software is not a component until it is placed on a computer’s hard drive or optical disc and can actually be used by a computer.
•Stun gun maker Taser International Inc. said Wednesday its fourth-quarter profit surged on strong sales as the company fought back a rash of product safety lawsuits that drove away business for more than a year.
The Scottsdale, Ariz.-based company has boosted profits for four straight quarters since a nightmarish 2005 that included multiple government safety inquiries and a Securities and Exchange Commission investigation into the company’s accounting practices.
•Zale Corp. said Wednesday that its holiday-quarter sales and earnings were nearly flat as price-cutting squeezed the jewelry retailer’s profit margins.
Zale shares fell $1.40, or 4.67 percent, to close at $28.56 on the New York Stock Exchange.
Profit in the quarter that ended Jan. 31 totaled $88.1 million, or $1.80 per share, compared with $87.8 million, or $1.78 per share, a year earlier.