Microsoft has lost an appeal in a patent case that will force it to alter Microsoft Word to avoid an injunction on sales of the product.

Microsoft lost a patent case involving a company called I4i in May, after a jury ruled that Microsoft infringed one of i4i's patents with a custom XML feature found in Word. In August an injunction was placed on sales of Word pending the appeal, which did not go in Microsoft's favor Tuesday.

"We couldn't be more pleased with the ruling from the appeals court which upheld the lower court's decision in its entirety. This is both a vindication for I4i and a war cry for talented inventors whose patents are infringed," said Loudon Owen, chairman of I4i, in a statement.

More: http://news.cnet.com/8301-10805_3-10420391-75.html