Microsoft Loses $242 Million Patent Lawsuit Over Cortana Technology

Microsoft faces a hefty financial blow after a jury verdict in Delaware found the company’s Cortana virtual assistant infringed on a patent held by IPA Technologies.

Following a week-long trial, a federal jury in Delaware ruled in favor of IPA Technologies on Friday, May 10th, 2024. The jury determined that Microsoft’s voice recognition technology used in Cortana violated a specific patent owned by IPA related to computer-communication software. This verdict translates to a $242 million USD judgment against Microsoft.

Patent Dispute Over Voice Assistant Technology

IPA Technologies, a subsidiary of patent-licensing company Wi-LAN, is at the center of this legal battle. Wi-LAN, co-owned by Canadian tech firm Quarterhill and two investment firms, acquired the patent in question from SRI International’s Siri Inc. This technology formed the foundation for Apple’s Siri virtual assistant launched in 2011.

The lawsuit, originally filed by IPA in 2018, accused Microsoft of infringing on patents related to personal digital assistants and voice-based data navigation features. The case ultimately focused on a single IPA patent, with Microsoft arguing that their technology did not infringe and the patent itself was invalid.

Next Steps for Microsoft and IPA

Microsoft has expressed its intention to appeal the verdict. “We remain confident that Microsoft never infringed on IPA’s patents and will appeal,” stated a Microsoft spokesperson.

IPA and Wi-LAN have yet to comment publicly on the jury’s decision.

Wider Implications for Voice Assistant Technology

This lawsuit highlights the ongoing patent wars surrounding virtual assistant technology. IPA has also pursued legal action against Google for alleged patent infringement, with that case still ongoing. In 2021, however, Amazon successfully defended itself against a similar lawsuit from IPA.

The outcome of this case and any potential appeals could have implications for the development and functionality of virtual assistants across the tech industry.