AT&T, Microsoft argue patent case
By CHRISTOPHER S. RUGABER
A lawyer for AT&T argued before a skeptical Supreme Court on Wednesday that Microsoft Corp. is violating one of its patents when it sends its Windows software overseas to be copied and placed on personal computers.
Microsoft acknowledged that it violated AT&T's patent on speech encoding technology when it sold Windows in the United States, but disputes that it should be held responsible for infringement when the software is copied by foreign computer manufacturers.
Justice Stephen Breyer expressed sympathy for Microsoft Corp.'s argument, suggesting AT&T Inc. should pursue its infringement complaint in overseas markets where the copies are made.
"The whole question here is whether (the company) has to get a patent" abroad, Breyer said.
At issue in the dispute is a section of patent law that bars companies from shipping components of a patented invention overseas for assembly. The intent of the provision, which became law in 1984, was to prevent companies from circumventing patents by sending parts offshore to assemble them in a way that would infringe the patent in the United States.
