Jury orders Microsoft to pay $200M in damages to i4i

    TORONTO, May 26 /CNW/ - i4i, headquartered in Toronto, ON, Canada,
received a $200 million patent infringement verdict from a federal jury who
found that Microsoft Corp., the world's largest software maker, infringed on
an i4i patent. The verdict was issued on May 20, 2009, in the U.S. District
Court for the Eastern District of Texas, Tyler Division.
    Michel Vulpe, founder of i4i and inventor of the patent, says: "We are
very pleased with the verdict. The jury heard extensive testimony and evidence
and concluded that Microsoft had indeed infringed our patent." Mr. Vulpe adds,
"We feel vindicated with this result."
    Loudon Owen, Chairman of McLean Watson Capital Inc. and i4i, says:
"McLean Watson has worked closely with i4i as a major investor for 13 years."
Mr. Owen adds, "This is an important verdict for i4i, for the inventors and,
more generally, for the rights of all patent owners."
    The verdict followed an eight-day trial before the Honorable Leonard
Davis. The $200 million award reflects the jury's determination of a
reasonable royalty for Microsoft's infringement. The Court can increase the
award based on the willfulness finding, and i4i can seek a court order
blocking further use of its invention by Microsoft. To date this year, the
verdict represents the fourth largest jury verdict in the US and the
second-largest patent jury award, according to Bloomberg.
    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.
    Michael Cannata, director of i4i LP and advisor to the Northwater
Intellectual Property Fund, says: "This award demonstrates how companies like
i4i can enhance their ability to protect and, when necessary enforce, their
patents by having a partner that provides patent expertise, litigation
management skills and the capital to succeed in patent enforcement and

    i4i LP is a licensing entity affiliated with i4i Inc. i4i LP owns patent
No. 5,787,449, issued by the United States Patent Office in 1998. Investors in
i4i LP include McLean Watson Capital and the Northwater Intellectual Property

For further information:

For further information: Loudon Owen, lowen@mcleanwatson.com or (416)

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