Microsoft appeals Word patent case once more

Microsoft asks full panel of judges to review case

* Will still adjust Word to comply with injunction

LAS VEGAS, Jan 8 (Reuters) - Microsoft Corp (MSFT.O) on Friday asked for a full panel of judges to review a recent appeals court decision to uphold a $290 million jury verdict against it for infringing a patent held by a small Canadian software firm.

The world's largest software company wants all 11 judges of the United States Court of Appeals for the Federal Circuit -- which handles many patent and trademark cases -- to review the long-running case against Toronto-based i4i Ltd, in the hope of overturning the original judgment.

Microsoft had already appealed the case last year, but in December a panel of three appeals court judges rejected its arguments, upholding the original federal jury decision in August.

That jury, in U.S. district court in Texas, ruled that Microsoft had infringed a patent belonging to i4i relating to text manipulation software in the 2003 and 2007 versions of Word, Microsoft's word processing application.

The jury slapped more than $290 million in damages on Microsoft and the court granted i4i's motion for an injunction preventing Microsoft from selling versions of Word that contain the disputed patent technology.

That injunction was stayed while Microsoft appealed the case with the Court of Appeals, but is now set to go into effect on Jan. 11 after Microsoft's first unsuccessful appeal.

Microsoft said last month it is working to adjust current versions of Word to comply with the injunction, and said on Friday it will continue that work despite its new appeal.

"We look forward to the next steps as the court considers our petition, while continuing to move ahead with our plans to comply with the injunction by Jan. 11," Microsoft spokesman Kevin Kutz.

Microsoft's appeal is based on its belief that the appeal court decision in December conflicts with precedents in trial procedure and and establishing damages in patent cases, Kutz said.

A representative for i4i did not immediately respond to a request for comment.

Microsoft shares closed up 0.7 percent at $30.66 on Nasdaq.

The case is: i4i Limited Partnership and Infrastructures for Information Inc v. Microsoft Corp, an appeal from the U.S. District Court for the Eastern District of Texas in case no. 07-CV-113