The court upheld the jury's decision that the Seattle-area software giant infringed an Alcatel-Lucent patent with a calendar feature allowing user's to choose dates, The Seattle Times reported. But the judges referred the damages back to a district court in Southern California.
While Microsoft is still almost certain to pay damages, they are unlikely to be anywhere near as high.
Lucent calculated the damages at $561.9 million, 8 percent of the revenue Microsoft made by selling copies of software incorporating the feature. Microsoft estimated them at $6.5 million, based on a royalty agreement for a similar feature.
Chief Judge Paul Michel, writing for the three-judge panel, said the jury erred if it calculated the damages as a percentage of revenue.
"In short, Outlook is an enormously complex software program comprising hundreds, if not thousands or even more, features," Michel said. "We find it inconceivable to conclude, based on the present record, that the use of one small feature, the date-picker, constitutes a substantial portion of the value of Outlook."
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