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Microsoft's file system patent upheld

update Two patents covering one of Microsoft's main Windows file-storage systems are valid after all, federal patent examiners have decided.  —  The decision, announced Tuesday by the software giant, effectively ends a two-year saga over the patents …

CNET News.com Anne Broache

Context & Ripple Effects

Federal patent examiners have reversed themselves and declared valid two Microsoft patents covering the company's main Windows file-storage system, closing out a two-year reexamination saga that began when third parties challenged the claims. The decision lands squarely inside the mid-2000s software-patent fight: on the same day, the New York Times reported the U.S. patent office joining an effort to improve software patents, and CNET carried word of IBM tapping open source to improve patent quality — both signs that examination quality itself had become the battleground.

First-order effects

  • Microsoft keeps exclusive rights to the file-storage technology at the heart of Windows storage, and any company whose products read or write those file formats without a license now faces renewed infringement exposure.

Second-order effects

  • Rivals and device makers building Windows-compatible storage lose the cheapest defense — invalidation at the examiner stage — and must instead weigh licensing deals or design-arounds, pushing money toward whoever holds the surviving claims.

Third-order effects

  • If examiners routinely let contested software patents stand on reexamination, challenges migrate toward district courts and Congress, feeding exactly the patent-reform momentum visible in the same week's coverage of the office's quality efforts.

The trend: Contested software patents are increasingly surviving administrative reexamination, shifting the fight over their validity from patent offices to courts and legislators.