News

February 2009

KBT&F Motion to Dismiss Microsoft Action Against Client WebXChange Granted By Federal Court

Lawrence B. GoodwinSteven D. ChinCharlotte Pontillo


KBT&F’s motion to dismiss an action by Microsoft for a declaratory judgment that Microsoft had not infringed KBT&F client WebXChange's patents -- relating to real-time internet transactions technology -- was granted on February 17, 2009 by the U.S. District Court for the Northern District of California. Microsoft had filed the action in response to requests by three Microsoft customers -- Allstate, Dell, and FedEx -- for Microsoft's indemnity against pending patent infringement claims KBT&F had brought against those companies, in Delaware federal court in March 2008, arising from their use of Microsoft products to assist in the development of their own allegedly infringing systems. The California federal court agreed with KBT&F's argument that it lacked subject matter jurisdiction over Microsoft's claims because Microsoft failed to plead, or adduce evidence sufficient to establish, a justiciable controversy. The Court also noted that the "Delaware actions are well along the road to resolution, and it would be imprudent for this Court to usurp the disposition of that issue from the [Delaware judge.]" KBT&F partner Peter Toren argued the motion and was assisted by partner Lawrence Goodwin, special counsel Steven Chin and associate Charlotte Pontillo.