Remember the i4i lawsuit against Microsoft earlier this year for an XML-related patent infringement? The lawsuit that Microsoft lost and appealed the verdict soon after? That case is back, and Microsoft has lost the appeal. Starting January 11, 2010, Microsoft has promised to remove XML from all future versions of its highly profitable Word application. In addition, Microsoft will also have to pay $290M to i4i for their misdeeds.

The good news is that Microsoft won’t have to halt the sale of Word until after January 11 (hence the target date to amend the application by then), which could really spell trouble. Of course, Microsoft is still looking at their legal options, and i4i is excited with the news. Happy Holidays!