Don’t get all excited on this, because I’m sure a settlement will come down the road.
That said, an a U.S. Court of Appeals found against Microsoft in a patent dispute with i4i Limited over the use of technology involving XML that Microsoft is using in its word processor, Microsoft Word. The Court of Appeals also allowed the injunction against selling the software to go forward beginning January 11, 2010.
As I said, look for some sort of settlement.
UPDATE: Microsoft has made a statement about this and it can be found here. Essentially they will comply with the order and remove the technology in question from Office 2007. Office 2010 is not affected as it does not contain that technology.