Irvine’s Uniloc USA Inc., a small, privately held maker of security software, may be forever known as the company that took on Microsoft Corp.—and won big.Earlier this year, Uniloc won a six-year patent infringement lawsuit and saw a $388 million jury award against the Redmond, Wash.-based software superpower.
Uniloc accused Microsoft of infringing on a patent for software that ties programs to a specific computer to prevent copying on other PCs.
The company claimed Microsoft used Uniloc’s “physical device recognition” software—which distinguishes a computer from millions of others out there—to prevent copying of its Windows XP operating system and Office suite.
But the fight isn’t quite over for Uniloc. The company is waiting for a Rhode Island judge to hand down a final judgment on the award.
“We are week to week” awaiting word in the case, Chief Executive Brad Davis said.
Uniloc initially sought $560 million before March’s jury award. The company hasn’t seen any of the settlement as the legal process works its course.
It is seeking interest on the award and an injunction that would ban the sale of Microsoft programs found to have infringed on the patent.
For its part, Microsoft has filed post-trial motions seeking to overturn the award. Barring that, it plans to appeal the verdict. Or Microsoft could strike a settlement deal.
Uniloc, which has about $100 million in yearly sales, had little choice but to take on the world’s biggest software maker, according to Davis.
“If the largest software publisher in the world is using your intellectual property without your permission and apparently for free, we can’t realize our value proposition,” he said. “It’s just not possible.”
According to Davis, Microsoft approached Uniloc in the late 1990s and looked at its software for a potential licensing deal.
“They kicked the tires and said, ‘No thanks,’” he said. “And then a few years later it showed up in the market.”
