A San Diego federal jury has ruled against Microsoft in a patent dispute case, ordering the software giant to pay $1.5 billion to Alcatel-Lucent.

The case centered on the MP3 audio technology used in Windows operating systems, CNET reports. The jury awarded damages to Alcatel-Lucent based on each Windows PC sold since May 2003. Alcatel-Lucent could also decide to pursue claims against other companies that use the widespread MP3 technology.

Microsoft Deputy General Counsel Tom Burt said the verdict "is completely unsupported by the law or the facts." He added that Microsoft would "seek relief from the trial court, and if necessary, appeal."

Microsoft argued that it had properly licensed MP3 technology from Fraunhofer for $16 million. Fraunhofer helped develop the MP3 compression technology along with Lucent's Bell Labs and has licensed its intellectual property to companies that want to use the MP3 audio format in their products.