Wow, barely anyone is actually discussing the lawsuit.
1) This is not from a patent holding company and is in fact a valid company which licenses it's technology to notable companies such as Sony.
2) This has absolutely nothing to do with the Entertainment and Devices division (IE Xbox).
3) This has to do with the encryption technology used for activating Windows XP and "some" Microsoft Office programs.
4) Microsoft hasn't lost any money as of yet. They will appeal and drag the court case on.
Basically, in 1993 some guy went to Microsoft proposing that they use his encryption technology for their software to prevent piracy. Then Microsoft used encryption technologies that were similar to his for Windows XP and Office many years later. Honestly, it's probably mostly BS. Companies get hit with patent infringement lawsuits for some of the most ridiculous "similarities".
Here's a more in depth article:
http://seattletimes.nwsource.com/html/microsoft/2009010426_webmsftpatent08.html
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