Software ruling.

Morrison & Foerster LLP lawyers in Los Angeles are celebrating a recent Appellate decision against Microsoft. Their client's software patent was allowed to stand and the computer giant held liable for up to $65 million in licensing fees.

Armando Amado developed and patented a software application linking spreadsheets and databases. The Ninth District ruled that Microsoft infringed on his patent through the sale of its Office Pro software.

Microsoft isn't throwing in the towel yet.

"We continue to contend that there was no infringement, and that our technology was developed by our own engineers based on preexisting Microsoft technology," a Microsoft spokesperson said. "We will continue to pursue our legal options in this case."

This decision upheld the District Court's ruling, which awarded Amado $6.1 million and entered a permanent injunction, with a stay on the injunction pending appeal. As a condition, the court ordered Microsoft to escrow an account covering sales of additional infringing products. The Appellate court will let the District court decide Amado's rightful share of the account, which currently holds more than $65 million.

"This ruling signals the validity of the patent and confirms Microsoft's liability of infringement on Mr. Amado's software program," said Vince Belusko, partner and lead attorney on the case. "We are hopeful that the District Court will now award Mr. Amado substantial monies from that escrow account when the matter is returned to the court."

Amado approached Microsoft to license his application for Excel in 1992, but the company declined. Amado got his patent in 1994. Microsoft introduced its software linking Excel spreadsheets to Access databases the following year.

Partners Charles Barquist and Hector Gallegos, Of Counsel Nicole Smith, and associates Scott Moore and Monica Scheetz, all from the Los Angeles office, also worked on the case.