U.S. District Judge William Smith overturned the April jury verdict that said Microsoft had infringed on a patent issued to software company Uniloc.
The patent involves a program that prohibits users from downloading licensed software on more than one computer, Seattlepi.com reported Wednesday.
Uniloc claimed Microsoft used the patented material in Windows XP and Microsoft Office software. In the original suit, Uniloc sought $560 million in damages.
"We are pleased that the court has vacated the jury verdict and entered judgment in favor of Microsoft," spokesman Kevin Kutz said Tuesday.
A Uniloc spokesperson was unavailable for comment, Seattlepi.com said.