The recent ruling that fined Microsoft for violating MP3 patents belonging to Alcatel-Lucent could have widespread serious implications on the industry. Now the entire digital music industry is uncomfortably maintaining an uneasy calm as experts now think that this ruling could lead to hundreds of firms, including Apple and RealNetworks, being pursued for payments relating to the format.
Now it’s almost obvious that the victory could prompt the telecom equipment-maker to pursue claims, or seek royalties, from other firms that it believes infringe on the technology. The two patents in question in the ruling cover the encoding and decoding of audio into the digital MP3 format, a popular way to convert music from a CD into a lightweight file on a personal computer.
Alcatel-Lucent on the other hand refrained from answering on the question on future litigation. However, it indicated that it would continue to take measures to protect its intellectual property. The company also remained salient on the question to identify companies that license the patents disputed in the Microsoft case.
In the meantime, Microsoft has said that it plans to appeal the decision to the U.S. Court of Appeals for the Federal Circuit in Washington, a process that could take several years. Nonetheless, the digital music industry could be at risk of a fundamental shake-up if the appeal goes in the favor of Alcatel-Lucent. Interestingly, experts say that patent cases are disreputable for being overturned on appeal; roughly more than 50 percent are upturned on appeal.
