The Supreme Court’s decision on a case being heard this week could have some far reaching impacts for patent litigation.  The case, Microsoft Corp. v. i4i, arose from a patent infringement case in 2007.  The suit, which was originally brought by i4i, alleged that the Microsoft Corporation had violated patents relating to tools in Microsoft Word that allowed users to change the “architecture of a document.”  The technology in dispute is specifically the tool in Microsoft Word that allows users to create custom XML documents.

The case was decided in favor of i4i by the United States District Court for the Eastern District of Texas in 2009.  The court’s decision enjoined Microsoft from selling any products that contained the disputed technology.  In an effort to temporarily remedy the situation, Microsoft Corporation replaced all of its products with versions that no longer contained the disputed technology and appealed the decision.

Microsoft Corporation, along with other technology giants like Google and Apple, is now asking the Supreme Court to consider whether juries should be allowed to examine the validity of patents in infringement cases.  The technology giants argue that groups like i4i are filing “dubious patents” and, as a result, are inhibiting innovation.  By advocating for a reform of the jury’s role in a patent dispute, technology giants hope to reduce the impact of litigation by nonpracticing entities.

Also referred to as “patent trolls,” nonpracticing entities often engage in the patent process by buying an inventor’s rights to a patent.  After doing so, these nonpracticing entities hold onto their newly acquired patents until they can make an infringement claim against another business.  Although the technology giants are not the only victims of this process, they argue that they are subject to more lawsuits because of these claims.  As a result, Microsoft hopes to gain a tool in combating what it sees as claims arising from invalid patents.

via American University Intellectual Property Brief » Tech Giants Vs. ‘Patent Trolls’: What the Microsoft Corp. v. i4i Decision Could Mean for Patent Litigation.