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The patent battle between Microsoft and Alcatel-Lucent over digital music patents took a twist when a judge decided Microsoft won't have to pay a $1.52 billion jury verdict.

Microsoft Jams To MP3 Verdict Win

Several hours after the decision, Microsoft announced a $50 price cut on its Xbox 360 gaming console. Perhaps gamers should celebrate the judgment handed down by a federal judge in San Diego.

A Bloomberg report said the judge found no infringement on one of two MP3 patents. On the second patent, the judge decided Microsoft did possess a proper license.

Jurors handed down the landmark $1.52 billion verdict in February. Microsoft Deputy General Counsel Tom Burt blasted the decision as "completely unsupported by the law or the facts" at that time.

Judge Rudi Brewster reached a similar conclusion, stating in his order, "The jury's verdict was against the clear weight of the evidence," the report said.

A stunned Alcatel-Lucent complained about the reversal of their ten-digit windfall. A company spokesperson told Bloomberg, "The reversal of the judge's own pre-trial and post-trial rulings is shocking and disturbing."

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News Tags: Digital Music, MP3, Alcatel-Lucent, Microsoft, Bloomberg