Microsoft have been accused of copyright infringements in relation to how their popular word processor reads and writes XML files.  A company based in Toronto, Canada called i4i have claimed Microsoft have violated patents granted back in 1998 concerning methods for reading XML files.  Judge Leonard Davis has ordered Microsoft to pay $290 million in damages and fines of £13,000 per day until a final verdict is reached.

An injunction has also been granted banning Microsoft from selling Word in the US or importing into the country.  Microsoft said they would appeal the verdict but if they are not successful this could create a huge problem for the company as the application is integrated into their office system and has millions of users worldwide.

This does not affect them selling the software in the UK but if Microsoft are banned from selling it in the US where it’s biggest market is only time will effect will that have on the UK and the rest of the world.  This will most likely result in a huge payout.