Alcatel-Lucent could sue other firms, analysts say (MP3 royalties on way?)

MarketWatch ^ | 9:10 AM ET Feb 23, 2007 | Aude Lagorce

[martin_fierro]

Alcatel-Lucent could sue other firms, analysts say

Thursday's landmark victory over Microsoft paves way for more payments

By Aude Lagorce, MarketWatch

Last Update: 9:10 AM ET Feb 23, 2007

LONDON (MarketWatch) -- Alcatel-Lucent's landmark victory against Microsoft Corp. over the right to use the popular MP3 format for digital music potentially paves the way for the gear-maker to seek compensation from a flurry of other companies, analysts said on Friday.

Microsoft on Thursday was ordered to pay more than $1.5 billion to Alcatel-Lucent after a federal court in California ruled that the software giant infringed two Alcatel-Lucent patents in using the MP3 format for playing digital music on its Windows Media Player device.

Microsoft has vowed to fight the penalty payment and is likely to appeal the decision, thus delaying the cash payout, the ruling could have significant implications for the music and technology industries.

If the ruling stands, Apple and hundreds of other companies that make products that play MP3 files, including portable players, computers and software, could also face demands to pay royalties to Alcatel.

A spokesman for Alcatel on Friday said the company couldn't speculate on potential other lawsuits regarding the disputed MP3 technology but said none were under way.

Richard Windsor, a London-based analyst with Nomura, said the ruling "paves the way for Alcatel-Lucent to seek cash from other companies."

Alcatel-Lucent shares rose 2.5% in Paris afternoon trading.

Other companies may have to cough up

Before it merged with Alcatel last year, Lucent filed a U.S. federal lawsuit in 2003 claiming Microsoft partners, including computer makers Dell, Inc. used Windows software that infringed its patented technology.

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[martin_fierro]

Hmmm.

[martin_fierro]

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Hat tip to tubebender

[TommyDale]

I wouln't be surprised if Microsoft Vista doesn't disable MP3s in the future, just as it has disabled other functions, such as S/PDIF optical interface.

http://www.cs.auckland.ac.nz/~pgut001/pubs/vista_cost.html

[TomGuy]

Reminiscent of the .gif and .jpg graphics format royalty claims from the 90s and the htm proprietary claim.

[Spktyr]

AAC is looking better and better, not so?

[Spktyr]

The next Vista update probably *will* disable them.

This kind of spells doom for the Zune, too....

I suspect Apple is probably safe, since they're using Lucent components in the iPod, if I recall correctly.