The software giant Microsoft Corp. will not have to pay Alcatel-Lucent $358 million damage award for patent infringement.

U.S. Court of Appeals ruled that the software giant had infringed on the patent but $358 million damage award was short of evidentiary support.

Now the US District Court for the Southern District of California will determine what damages should be.

Speaking on the issue, Kevin Kutz, spokesperson for Microsoft, said, “We are pleased that the court vacated the damages award, and we look forward to taking the next step in the judicial process.”

Microsoft had argued that it should pay only$6.5 million, but Alcatel-Lucent claimed the patent was worth $358 million, based on Outlook sales.

Alcatel-Lucent filed multiple lawsuits in November 2006, claiming Microsoft Outlook, Money and Mobile software infringed on a patent held by it.