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Online services company Network Commerce Inc. has been awarded
a trial date in its patent infringement lawsuit against Microsoft
Corp. The software giant is accused of using the smaller company's
technology in its Windows operating system, Windows Media Player
and other products.
Network Commerce, whose top executive is a former general
manager at Microsoft, filed the lawsuit Dec. 6 in U.S. District
Court for the Western District of Washington, said Anne-Marie
Savage, a spokeswoman for Network Commerce. It was notified by
the court last week that a trial date has been set for September
2003. "It's quite a process with all the discovery,"
said Savage, explaining the delay.
The suit accuses Microsoft of infringing a patent on a method
for selling software, digital music and digital video over the
Internet, Network Commerce said in a statement. Specifically,
U.S. Patent No. 6,073,124 describes a system that uses "separate
servers and a download component to coordinate the downloading
of digital content for online transactions," the company
said.
The patent was filed in July 1997 and approved in June 2000, according
to the U.S. Patent and Trademark Office Web site. It was issued
to ShopNow.com Inc., which Savage said is a former name of Network
Commerce.
Seattle-based Network Commerce plans to seek monetary damages,
the amount of which has yet to be determined, said Savage.
Microsoft did not immediately return a call seeking comment.
Network Commerce offers a variety of services, including domain
name registration, Web hosting and online marketing. None of its
current offerings make use of the technology at issue in the lawsuit,
although planned future offerings will make use of it, Savage
said.
Dwayne Walker, the company's chairman and CEO, held several key
positions at Microsoft between 1989 and 1996, according to the
Network Commerce Web site. They included general manager of sales
and marketing, director of Windows NT and networking products
and director of SQL Server and network products.
"I continue to be a shareholder and a fan of [Microsoft],"
Walker said in the statement. "But that doesn't change our
obligation to defend Network Commerce's rights to its innovative
intellectual property. We hope to resolve this legal dispute amicably,
perhaps through a licensing arrangement."
Network Commerce said it has a similar suit pending against Liquid
Audio Inc. A U.S. court earlier this month declined a motion by
Liquid Audio to dismiss the case, according to Network Commerce.
Redwood City, Calif.-based Liquid Audio could not immediately
be reached for comment.
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