Microsoft Patents Apple Scroll Wheel

AUG. 16 2:20 P.M. ET Given the intense rivalry between
Apple Computer Inc. and Microsoft Corp., this recent revelation had a
comedic tinge: Apple took too long to file a patent on part of its blockbuster
iPod music players, so Microsoft beat Apple to it.

Bloggers and other tech pundits snickered at the prospect of Steve Jobs
having to pay Bill Gates royalties on the beloved iPods, which account
for more than one-third of Apple’s revenue. One Web columnist even dubbed
the patent office the "iPod killer."

To be sure, the U.S. Patent & Trademark Office last month did reject
a request that Apple filed in October 2002 to patent technologies that
support the iPod’s rotational wheel interface. The reason for the rejection:
Microsoft had apparently outraced Apple to the patent office with a similar
request by five months.

from Business Week