$290 million damages award against Microsoft upheld for software company i4i

The Federal Circuit unanimously affirmed a district court judgment of willful infringement and a damages award of approximately $290 million, plus interest, as well as the entry of a permanent injunction against Microsoft in favor of Finnegan client i4i, a Canadian software company that developed tools for working with documents containing XML markup. The court held that Microsoft had waived certain arguments by not properly objecting at trial, that the factual issues resolved by the jury were supported by substantial evidence, and that all of the district court’s legal conclusions were correct. The Supreme Court then issued a unanimous decision in i4i’s favor, rejecting Microsoft’s position that the appropriate standard of proof is “preponderance of the evidence” and holding instead that invalidity must be proven by “clear and convincing” evidence.