Unfortunately, facts of the case are rolling out and an uncovered email from a member of Microsoft's XML for Word development team proves that they were aware of i4i's XML technology.
Information Week reports that court records include an email from Martin Sawicki, a Microsoft employee, possibly dated prior to the release Office 2003, that reads, "We saw [i4i's products] some time ago and met its creators. Word 11 will make it obsolete...It looks great for XP though."
This is pretty damning evidence, and likely one of the primary reasons that the jury voted against Microsoft. Given the nature of the email, it's hard not to believe that Microsoft will be forced to settle with i4i for a hefty sum, though first things first, an appeal is most certainly pending.
Of course, Microsoft Word is too instrumental to the Office suite of products to go anywhere. Worst case scenario, Microsoft will pay a settlement and update their software on the market with a patch to get around the restrictions of the ban.