Even if this is upheld (which seems very unlikely),it does not prevent Microsoft selling Word. They could, if absolutely necessary, remove the ability to save documents in DOCX format, which in any case only affects Word 2007. Admittedly, it would be drastic and expensive for them to do that, but it's definitely not the end of Word as we know it.
By the way, if I've read this right, it should also affect Excel 2007, as that too uses an XML-based format.
But I'd be willing to bet that the judgment won't stand up in a higher court. Or, if it does, it will take many years before there is a decision.
Mike