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.