A Californian court has ordered Microsoft to pay Alcatel-Lucent US$367.4 million (£186.25m) for infringing on two patents.
The jury, in US District Court in San Diego, found that Microsoft had infringed on two patents involving user interface technology. It also found that Microsoft didn't infringe on another Alcatel-Lucent patent related to video decoding. The court ruled that patent, which Alcatel-Lucent alleged was infringed in MPEG2-based DVD playback in Windows, is invalid.
According to Microsoft, which will try to overturn the infringement verdict, Alcatel-Lucent had hoped to receive $1.75bn (£880m) in damages. Microsoft called the video patent ruling a victory for the many companies that use MPEG video-decoding technology.
The case dates back to 2003, when Alcatel-Lucent charged Microsoft, Dell and Gateway with patent infringement.
Last year, a court reversed a $1.5 billion patent infringement case against Microsoft in a case Alcatel-Lucent brought against the software giant related to MP3 technology.
There's more to come in the ongoing battle between the companies. On 22 April, the San Diego court will hear a case Microsoft is bringing against Alcatel-Lucent, accusing it of infringing on nine patents.