Toronto Company Kills Word Sales

From the hard-to-believe file, a Texas judge has ruled that Microsoft can’t sell its popular Word product in the U.S. because Microsoft is allegedly violating a patent involving XML owned by Toronto-based i4i Inc. (For the news story, check out Seattle PI.)

Judge Leonard Davis, of the U.S. District Court for the Eastern District of Texas, ordered a permanent injunction that “prohibits Microsoft from selling or importing to the United States any Microsoft Word products that have the capability of opening .XML, .DOCX or DOCM files (XML files) containing custom XML.”

In addition to the injunction, which takes affect in 60 days, Judge Davis also awarded i4i damages of $290-million.

So, who’s i4i?

According to its Web site, i4i is a ” world leader in the design and development of collaborative content solutions and technologies” that was founded in 1993 by Michel Vulpe.

If you’ve never heard of i4i, you’re probably not alone.

That said, i4i was thrust into the spotlight in May when it received a $200-million patent verdict from the U.S. District Court for the Eastern District of Texas, Tyler Division.

After an eight?day trial, the jury agreed with i4i that certain versions of Microsoft’s Word 2003 and Word 2007 products use “extensible mark?up language”, or XML, in a way that infringes i4i’s U.S. Patent No. 5,787,449.

i4i filed the lawsuit in March 2007, seeking an injunction and damages. The Eastern District of Texas is known for being a haven for patent litigation.

More: CNet did an interview with i4i chairman Loudon Owen, who notes that the injunction only affects Word that features the company’s customer XML technology.