Microsoft $1.5bn MP3 fine dropped

A US court has overturned a decision ordering Microsoft to pay phone firm Alcatel-Lucent $1.52bn (£777m) for infringing music patents.

The federal judge in San Diego reversed a jury's decision which had ruled that Microsoft's Media Player software infringed on two Alcatel patents.

Both patents regarded how audio was converted into MP3 files.

Alcatel said it would appeal against the decision while Microsoft said the reversal was a "victory for consumers".