z4 Technologies vs Microsoft Corp. and Autodesk Inc. Bernardo de Seabra Computer Science UC Berkeley September 22 nd, 2008 IEOR 190G – Patent Engineering

Patent Abstract “A method and apparatus for securing software to reduce unauthorized use include associating a password or series of passwords with each copy of group of authorized software and requiring entry of a first password obtained from the developer or authorized representative of the software after exchanging registration information” “A method and apparatus for securing software to reduce unauthorized use include associating a password or series of passwords with each copy of group of authorized software and requiring entry of a first password obtained from the developer or authorized representative of the software after exchanging registration information”

In Other Words… Enter two passwords to activate software Enter two passwords to activate software

Product Activation

Patent Details

z4 Technologies Products using the patented technology: Products using the patented technology: NONE

Claims z4 Technologies: z4 Technologies: Invented product activation software to prevent illegal copying that was used in Microsoft's Office and Windows XP and Autodesk's AutoCAD Invented product activation software to prevent illegal copying that was used in Microsoft's Office and Windows XP and Autodesk's AutoCAD Microsoft/Autodesk: Microsoft/Autodesk: Use their own software and that z4 Technologies' patents didn't contain new inventions Use their own software and that z4 Technologies' patents didn't contain new inventions

Court Ruling Microsoft: Microsoft: Pay z4 Technologies $115 million awarded by the jury, $25 million in enhanced damages and almost $2 million in legal fees, plus interest Pay z4 Technologies $115 million awarded by the jury, $25 million in enhanced damages and almost $2 million in legal fees, plus interest Autodesk: Autodesk: Pay z4 Technologies the $18 million imposed by the jury plus $322,000 in legal fees, plus interest Pay z4 Technologies the $18 million imposed by the jury plus $322,000 in legal fees, plus interest

Key Point Patent Law is flawed: Patent Law is flawed: Although it is supposed to protect and promote innovation it can also be used to prevent innovation. Although it is supposed to protect and promote innovation it can also be used to prevent innovation.

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