Again, I think most of you are missing the details in this patent claim. This is NOT a simple serial number scheme. The shareware/games of the 80's and 90's, not to mention the Windows releases up through Win2000, typically used a serial registration scheme that simply verified through some algorithm and checksum that the serial was valid. However it did not:
(a) verify anything online (since there was no universal online network, just some proprietary networks like CompuServe, Genie, etc. and private BBSes). The majority of PC owners didn't even have modems in those days. Making them dial-in to a proprietary activation network would have been a nightmare, and having been around in those days and installing a LOT of software back then, I never recall one doing so. And...
(b) lock itself to the hardware platform
These two distinctions are what appear to make this quite likely a novel patent at the time, and again while I don't care for much of the current state of patent law, patent trolls, et al, this does seem to fit the requirements for a novel and unique way to do something, and thus be protectable by patent. It's NOT just a conglomeration of existing patents or schemes.
Think about it from the following perspective:
- Someone has this idea about how to lock a software activation to the user's hardware AND require them to validate the activation online, years before it can even be practically implemented
- Years later, after successfully licensing said scheme to the gaming industry, this person approaches Microsoft with this activation scheme as a suggesting for protecting upcoming versions of of their software
- MS says "No Thanks!"
- MS then proceeds to implement a virtually identical protection scheme on their new Windows XP release.
How could anyone criticize the patent holder, and find MS not liable, given that information (assuming it is all correct, I just listed it as I understand it)? It's a classic case of bully infringement, one that mega-corporations often do against little guys who they figure won't have the guts/resources to sue, and if they do, they'll just wear them down in litigation costs. They have little to lose other than their integrity, which most don't really care about when it doesn't affect their bottom line, and even then they have a massive PR machine to vilify the victim as a greedy, money-hungry lech.
The only issue I have is with the way the legal complaint was written, claiming that "The company alleged Microsoft earned billions of dollars by using the technology in its Windows XP and Office programs." MS didn't earn billions because of this activation scheme -- in fact if you believe some of the anti-DRM folks, it cost them some sales, though likely negligible. They would have earned billions without it as well. And hell, the activation scheme they implemented was hardly successful against piracy anyway. So at least that part of the claim is disingenuous at best.