Microsoft sued for patent violation by former executive

SEATTLE: Network Commerce Inc., an Internet commerce tools and services

company headed by a former Microsoft executive, said Monday it is suing the

software giant for allegedly violating a patent on conducting electronic

commerce.

Seattle-based Network Commerce said the patent covers a method for online

shopping that uses separate servers and a piece of software to coordinate

downloading of software, music and video over the Internet.

The suit, filed in the US District Court in Seattle, was similar to one

Network Commerce filed last December against digital music technology firm

Liquid Audio Inc. "We believe that Microsoft infringes on our patented

technology in various Microsoft products, including but not limited to the

Windows operating system and the Windows Media Technology products," Chief

Executive Dwayne Walker said in a statement.

A Network Commerce spokeswoman said a trial date had been set for September

2003. A Microsoft spokesman was not immediately available to comment.

Walker, who worked at Microsoft from 1989 to 1996 and held a variety of

management positions, said in the statement that he hoped to reach an agreement,

such as a licensing deal, with his former employer. "I am proud of and

grateful for my years at Microsoft. I continue to be a shareholder and a fan of

the company. But that doesn't change our obligation to defend Network Commerce's

rights to it's innovative intellectual property," Walker said.

Network Commerce, which runs shopping sites like shopnow.com and

bottomdollar.com, as well as offers e-commerce tools, was delisted from the

Nasdaq last August and now trades on the over-the-counter market.