Microsoft Slapped with $521M IE Patent Infringement | Internet News

Microsoft Slapped with $521M IE Patent Infringement

Written By
Ryan Naraine
Ryan Naraine
Aug 12, 2003
2 minute read

A Chicago jury has ordered software giant Microsoft
to pay $521 million

to the University of California and Eolas Technology for using patented
technology in its

flagship Internet Explorer browser.

According to Bloomberg data, the award is the largest U.S.
jury verdict this

year.

Microsoft said it would appeal the ruling in the U.S. Circuit Court of
Appeals, noting that

the court has already rejected claims of willful infringement.

“We believe the evidence will ultimately show that there was no
infringement of any kind, and

that the accused feature in our browser technology was developed by our own
engineers based on

pre-existing Microsoft technology,” the company said in a statement.

In the lawsuit, filed in February 1999, Chicago-based Eolas Technologies
claimed as much as

$1.2 billion for alleged patent infringement involving plug-in and applet
technology. The

company accused
Microsoft

of using its patented technology in its Windows 98, Windows 95 and Internet
Explorer

programs.

Eolas’ patent (US Patent 5,838,906) was granted on November 17, 1998 and
covered technologies

for the creation of a browser system that allowed for the embedding of
small interactive

programs, such as plug-ins, applets, scriptlets or ActiveX Controls, into
online documents.

After the jury’s ruling, Microsoft said it would work hard to ensure
there is “very little if

any impact on our customers.”

“As an intellectual property company, Microsoft invests heavily in
research and development,

and is committed to respecting the intellectual property rights of others,”
Microsoft added.

In a separate statement, the University of California welcomed the cash
verdict, calling it a

“significant landmark in defining and protecting Internet technology.”

“As a public institution that reinvests its licensing revenue in its
larger research mission,

we are gratified by the jury’s recognition that UC and Eolas must be fairly
compensated for use

of its patented technology,” the university added.

Microsoft’s Internet Explorer dominates the Web browser market, well
ahead of competing

products from Netscapek, Mozilla/Phoenix and Opera.

Internet News Logo

InternetNews is a source of industry news and intelligence for IT professionals from all branches of the technology world. InternetNews focuses on helping professionals grow their knowledge base and authority in their field with the top news and trends in Software, IT Management, Networking & Communications, and Small Business.

Property of TechnologyAdvice. © 2026 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.