{"ID":55409,"name":"Microsoft Corp. v. AT\u0026T Corp.","href":"https:\/\/api.oyez.org\/cases\/2006\/05-1056","view_count":0,"docket_number":"05-1056","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Microsoft Corporation","second_party":"AT\u0026T Corporation","timeline":[{"event":"Granted","dates":[1161925200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/39740"},{"event":"Argued","dates":[1172037600],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/39741"},{"event":"Decided","dates":[1177909200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/39742"}],"lower_court":{"ID":17,"name":"United States Court of Appeals for the Federal Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/17"},"facts_of_the_case":"\u003Cp\u003EAT\u0026amp;T owned the patent for certain speech codecs (a type of software code) included in Microsoft\u0027s Windows operating system. When Microsoft sent master versions of the software overseas, copied them, and sold the copied software, AT\u0026amp;T sued for patent infringement. A company is guilty of infringement under the Patent Act if it \u0022supplies...from the United States...components of a patented invention...in such manner as to actively induce the combination of such components.\u0022 Microsoft argued that it was not liable because 1) software code is intangible and cannot not be considered a \u0022component\u0022 of an invention and 2) no software had been \u0022supplied\u0022 from the U.S. because the copies were made overseas.\u003C\/p\u003E\n\u003Cp\u003EThe District Court rejected both of Microsoft\u0027s arguments, and the U.S. Court of Appeals for the Federal Circuit affirmed. The Federal Circuit ruled that software code could be a component, because the Patent Act was not limited to physical structures. The Circuit Court also held that each overseas copy made of the U.S.-originated software code was \u0022supplied\u0022 from the United States.\u003C\/p\u003E\n","question":"\u003Cp\u003E1) Can software code be a component of a patented invention for purposes of the Patent Act?\u003C\/p\u003E\n\u003Cp\u003E2) Are copies of software code \u0022supplied from the United States\u0022 for purposes of the Patent Act when the copies are created overseas from a master version that is supplied from the United States?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003ENo and no. The Court ruled 7-1 that Microsoft was not liable for infringement of AT\u0026amp;T\u0027s patent. The opinion by Justice Ruth Bader Ginsburg held that \u0022software code is an idea without physical embodiment\u0022; it cannot be a component of a patented invention. While leaving open the possibility that intangible things could be components in some cases, the opinion compared software code to a blueprint - something that can precisely describe the combination of the components, but is not itself a component. The majority held that Microsoft\u0027s Windows software does not become a component for purposes of AT\u0026amp;T\u0027s patent until it is converted into copies that can be read by a computer. The Court acknowledged that the copying from the master versions was an easy step, but it was nonetheless \u0022essential.\u0022 Since the crucial step occurred outside the United States, the copies were \u0022supplied from the United States\u0022 under the meaning of the Patent Act. Instead, each functional copy was produced overseas from the master version of the software code. Justice Stevens\u0027s lone dissent disagreed with the Court\u0027s comparison of software code to a blueprint. 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