Whoa: Microsoft Word is illegal

RealNetworks wasn't the only company that got slapped with bad news from the courts yesterday. Microsoft was also the suddenly-announced loser in a long-running case that could potentially have far more serious consequences for the average reader of this blog.

Specifically: Microsoft was issued a permanent injunction against selling Microsoft Word products due to a patent infringement dispute with a Canadian company called i4i. That means that, according to the ruling, Microsoft is required to stop selling Word within 60 days -- plus pay $290 million in damages to i4i for copies it has already sold.

The spat involves Microsoft's use of XML, which became a default file system beginning with Word 2007 and the new ".docx" format that it uses. i4i has a patent over the use of XML as it relates to Microsoft Word -- granted way back in 1998 -- and naturally it sued Microsoft in 2007 after the company began offering a similar feature out of the box. ANd sure enough, the court said that Microsoft's implementation of XML violated i4i's patent.

And that's that. Microsoft says it's disappointed, that it will appeal, and that i4i's patent is invalid. i4i is probably giddy with the possibility of getting a fat check from the company.

Realistically, though, Microsoft will undoubtedly do everything in its power to avoid paying the judgment as issued. Instead it will of course resort to endless legal tactics to stay the ruling against it while it most likely negotiates with i4i to work out some sort of licensing arrangement. The legal verdict against the company doesn't help Microsoft's position, but it's been in far worse straits before: Remember, this is a company that was once ordered to split into two separate pieces, and we all know how that turned out.

Will Microsoft Word really vanish from the market any time in the near future? Seriously: If it does, I'll eat this blog post.