eldavojohn writes: Microsoft has been served papers claiming their state of the art product activation system infringes on a Singapore based company named Uniloc's patent. Bloomberg is reporting that a lawyer for Uniloc asked a federal court for $558 million in royalties from Microsoft. The official court order is here in PDF. This concerns the activation system of Windows XP operating system and some Office programs--Uniloc has decided that royalties of $2.50 for each of the 223 million activations is a fair price for Microsoft to pay. The patent ax swings both ways. The two seem to have a long history of court action.