A software and designing company based in Canada called i4i sued Microsoft back in 2007, alleging that the creator of various Windows operating system have without permission, used an editing tool patented by their company.
It is believed that i4i's program was used in Microsoft word processing application, Word 2003 and 2007 that infringes patent relating to i4i's text manipulation software.
Microsoft filed an appeal but on Thursday, lost in the Supreme Court by a conclusive 8-0 vote. Justice Sonia Sotomayor said federal law clearly states patents granted by the U.S. Patent Office are presumed valid and the court ordered Microsoft to pay $290 million to i4i which is still unpaid and with interest, are expected to rise above $300 million.
Google, Apple, Yahoo, Cisco and Intel backed up Microsoft's case by stating that is often impossible to determine whether a software program is patented, since programmers can and do quickly build new programs based on existing knowledge.
Microsoft's share price dipped when the decision was announced but quickly recovered and was little changed at $23.93 in afternoon business trade.
Microsoft have issued a statement, saying it "would continue to advocate for changes to the law."