Tuesday, March 22, 2011

Microsoft's (MSFT) Barnes & Noble (BKS) Lawsuit Could Hinder Google (GOOG)

The lawsuit filed by Microsoft (NASDAQ:MSFT) against Barnes & Noble Inc. (NYSE:BKS) and two manufacturers over Google's (NASDAQ:GOOG) Android-based Nook e-reader could end up slowing down Google's reach into the segment.

Microsoft Corp. broadened its attack on Google Inc.'s Android software, filing patent infringement lawsuits Monday against Barnes & Noble Inc. and two manufacturers over the Android-based Nook e-reader.

In the complaint filed in U.S. District Court in Seattle, Microsoft said it is seeking triple damages based on willful patent infringement of five patents, plus legal costs and an injunction against further infringement. Microsoft said it also filed a complaint with the International Trade Commission, which has the power to bar imports of infringing products.

Barnes & Noble's Nook and Nook Color devices, which compete with Amazon.com Inc.'s Kindle e-reader and various Sony Corp. devices, are based on Android, system software developed by Google first for smartphones and then for tablet computers. Microsoft also sued Motorola, a maker of Android-based smartphones, for patent infringement in October 2010. Motorola counter-sued in November.

Microsoft's lawsuits don't go after Google directly, but they could still hurt the Web search leader if device makers decide they don't want to pay to license Microsoft's technology or risk a legal tussle with the deep-pocketed software maker.

Microsoft closed Monday at $25.33, gaining $0.53, or 2.14 percent. Barnes & Noble closed at $9.26, up $0.37, or 4.16 percent. Google closed the session at $576.50, gaining $15.44, or 2.75 percent.




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