Timeline Terminates Limited Patent License Agreement With Microsoft

Timeline, Inc. announced that it has terminated a limited license to Microsoft under Timeline’s patents. In conjunction with the termination of the license, Timeline has filed a motion in federal district court in Seattle asking the court to add Microsoft as a defendant in Timeline, Inc. v. ProClarity Corp.

In the new complaint, Timeline alleges that Microsoft SQL Server infringes Timeline’s patents by creating databases for on line analytical processing (OLAP). The new complaint also alleges that Microsoft breached the terms of a 1999 agreement that gave it a limited license under Timeline’s patents. The scope of the license in the 1999 agreement was previously the subject of extensive litigation between the parties. In 2002, a final decision of the Washington Court of Appeals held in Timeline’s favor. That decision confirmed the license does not cover infringing combinations of non-Microsoft products and Microsoft products where the non-Microsoft product supplies a material element of the patent claim.

“The cash component paid by Microsoft under the 1999 agreement was only a portion of the total consideration,” said Charles Osenbaugh, CEO of Timeline. “Microsoft failed to honor the limited scope of the license as decided by the Court of Appeals. It also failed to comply with other important provisions of the agreement. Because Microsoft has so clearly disregarded its obligations under the agreement, Timeline believes it is within its rights to terminate the license and seek damages for infringement of its patents.”

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