
The U.S. District Court jury had determined that damages Microsoft should pay would have to reflect what the company would have paid up front to license the technology. However, the appeals court said that Alcatel-Lucent had failed to prove that its technology was valuable enough to merit royalties of $358 million.
The court judges told a district court to reconsider the penalty, and in the same ruling, affirmed the underlying verdict against Microsoft, which it claimed was backed by substantial evidence. Alcatel-Lucent said it was disappointed with the court's decision.