Microsoft runs into Live trademark spat

A company called Office Live has filed a trademark infringement lawsuit against Microsoft over the software giant's use of "Office Live" for its on-demand productivity tools.

Office Live, which runs sites such as Accountantsofficelive.com, Legalofficelive.com and Realtorsofficelive.com, offers free professional advice to consumers and offers customer leads to businesses. The company is seeking an injunction to prevent Microsoft from using the "Office Live" name.

The lawsuit comes at a time when Microsoft is working to get its highly touted "Live" offerings established in the market.

In November, Microsoft's internet-based business software, Office Live, became generally available in the US, with such features as customer management tools, email accounts and website building and hosting.

Office Live, based in the Los Angeles area, registered the "Office Live" trademark in 2002. It initially filed its lawsuit against Microsoft in December in US District Court in California but agreed to withhold serving the suit to allow the companies to pursue settlement negotiations.

When those talks broke down, Office Live served the Redmond software behemoth with a lawsuit earlier this month.

Lenny Targon, Office Live chief executive, said in a statement: "It is shocking that Microsoft would have so little regard for another company's intellectual property rights that it would select a name belonging to another company. Online software may be the next big thing but Microsoft has no right to use our trademark without permission."

A Microsoft representative said: "We don't think Office Live LLC has a trademark, or that we are infringing any rights asserted by Office Live LLC. Now that the complaint has been served, we will vigorously defend our legal position. We also will seek to invalidate Office Live LLC's claim to trademark the phrase 'Office Live' in its common connotation."

Microsoft said it views the word 'Live' as a descriptor, such as in the case of "AOL Live" and "Vodafone Live", and has indicated that stance to Office Live LLC in previous discussions.

Dawn Kawamoto writes for CNET News.com