Microsoft Sues over Patent Espionage

When one hears the terms “double agent” or “espionage,” one tends to associate those phrases with the CIA or KGB.  But, thanks to one former, sneaky Microsoft employee, those terms can also be applied to patents and the IP community.

According to Seattle Tech Report, Microsoft is suing a former employee and claiming that he used his position at Microsoft to gain access to confidential information related to patent litigation.  The case started when Miki Mullor was hired by Microsoft in November 2005.  Microsoft contends that Mullor applied for the job under false pretenses, after stating in his job application that he was a former employee at Ancora Technologies.  Mullor stated that the software development company had gone out of business, however, that was far from the case.  In fact, Ancora was still very much in business and Mullor was the CEO, according to Microsoft.

While he was at Microsoft, the company contends that Mullor downloaded confidential documents to his company-issued laptop, which were related to the subject matter of a patent complaint Ancora later filed in June 2008.  As Microsoft said in the complaint, “The documents downloaded by Mullor relate directly to the subject matter of Ancora’s Patent Action.  These documents had no bearing on Mullor’s work at Microsoft at the time.”

Ancora initially named Dell, Hewlett-Packard and Toshiba, in the lawsuit, stating the use of a Microsoft technology violated an Ancora patent.  Since then, Microsoft has also been named a party in the suit. Ancora stated their position on their web site:

“To secure each copy of (Windows), without burdening the honest user, (PC makers) use a technology known as System Locked Pre-Installation (SLP) to protect Windows against piracy.  SLP is Ancora’s technology and is covered by our pioneer patent.”

Microsoft is seeking a court order which would bar Mullor from any involvement in the patent claim, including any assistance he could give Ancora with prosecuting the suit.

Yet, those who are anxious to follow this trial will need to have patience as a virtue.  The case is scheduled for trial on January 26, 2010, in a Los Angeles federal court.