In the case of Microsoft Corporation v. AT&T Corp., 2006, the U.S Supreme Court ruled in favor of Microsoft. The dispute revolved around a software developed by Microsoft that could be used to compress speech into data and was installed on computers manufactured abroad. AT&T held a patent for this technology and argued that each foreign-made computer with this software violated their patent rights under Section 271(f) of the Patent Act, which prohibits supply from the United States for combination abroad of components of a patented invention. However, Microsoft contended that it only sent a master version overseas once and all other copies were made from duplicates not originating from America directly but rather replicated abroad using the master disk or electronic transmission. The court agreed with Microsoft's argument stating that abstract software code is an idea without physical embodiment thus cannot be considered as 'component' under section 271(f). Therefore, no violation occurred when such non-physical entities are copied overseas even if they function identically to those installed domestically.

In the dissenting opinion for Microsoft Corporation v. AT&T Corp., Justice Stevens argued that software should be treated as a component of a patented invention, even if it is transmitted digitally rather than physically. He disagreed with the majority's interpretation of Section 271(f) of the Patent Act, which prohibits exporting components of patented inventions to be assembled abroad. The majority held that this provision did not apply because Microsoft only sent a master version overseas and copies were made there, so no "components" were supplied from the U.S.. However, Justice Stevens contended that sending one copy with intent for replication still constitutes supplying from United States under section 271(f). Furthermore, he believed digital transmissions should not be excluded simply because they are intangible or easily replicable; such distinctions do not align with modern understanding and use of technology in global commerce.