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Friday, Apr 17, 2026

Acacia Plunges on Court Loss to Microsoft

Newport Beach-based Acacia Research Corp. was dealt a big but rare court loss in a lawsuit against Microsoft Corp.

A Texas jury decided Thursday that an Acacia patent that speeds up computers wasn’t infringed on and is invalid.

The news sent Acacia’s shares down nearly 35% in late New York trading.

The company, which has a market value of about $320 million, saw its shares rise earlier in the week after it struck a settlement with AT & T; Inc.

Acacia acquires patents and then seeks to get royalties for their use from technology and other companies. The company’s 40 workers mostly are patent experts, lawyers and engineers.

Critics call Acacia a “patent troll” that uses the courts as a means to shake down unsuspecting companies.

The Microsoft case was over technology that helps computers boot up and start programs faster, according to Microsoft.

Acacia was seeking $2.50 per Windows XP license sold in the U.S., or about $600 million to $900 million, according to Reuters.

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