Microsoft on 11 April will release a patch that changes Internet Explorer so that the browser no longer violates a patent owned by Eolas. The change will require users to click or press keys before embedded elements on a webpage are activated.

The changes caused Eolas to lash out against Microsoft. They worsen of the users' browser experience, Eolas COO Mark Swords told eWeek. Instead, Microsoft should purchase a license on the dispute technology.

Is Eolas suddenly a consumer advocate? Or is the company really just looking to rake in some more money in addition to the $521m that it was awarded in a 2003 lawsuit?

Microsoft's decision significantly undermines Eolas' position. The software developer has shown that it doesn't need Eolas' technology, sending a signal that it doesn't plan to pay any outrageous sum. In essese, the update has downgraded the technology to the bargain basement: nice to have, but showing notable defects.

We witnessed how outrageous these license fees can get in the Blackberry-NTP case. There a jury awarded about $100m in damages for the patent violation. But Blackerry maker RIM had to pay another $500m to purchase a license on the technology.

The Eolas case just offers additional proof that there is an urgent need for patent reform, and that software patents should be treated differently from traditional patents for instance in the pharmaceutical industry.

I doubt however that this case will do anything to speed up that reform process. Microsoft is itself greatly profiting from the broken patent system, and will likely see this as a single incident. It's hard to be a patent optimist these days.

Photo credit: Ken Duncan

Tags: patent reform, patent, Microsoft, internet explorer, eolas

31 Mar 2006