A US district court has overturned a decision ruling that Microsoft has to pay Alcatel-Lucent $1.52 billion (£777 million) for patent infringement relating to MP3 technology.
Previously a jury had decided that technology used to encode and decode MP3 files in Windows Media Player breached two patents held by Alcatel-Lucent, a French phone company.
"Today's ruling by the judge reversing the jury's $1.52 billion verdict against Microsoft is a victory for consumers of digital music and a triumph for common sense in the patent system" said Microsoft's general counsel, Brad Smith.
Alcatel-Lucent, as you might imagine, was less pleased. "This reversal of the judge's own pre-trial and post-trial rulings is shocking and disturbing", said Mary Lou Ambrus, a spokesperson for Alcatel-Lucent.
Judge Rudi Brewster decided that Microsoft had not breached patent laws because it had paid German firm Fraunhofer $16 million (£7.89 million) to use the technology, and that for the suit to be valid Fraunhofer would need to join the case.