I thought this was interesting:

http://www.dfw.com/mld/dfw/7251493.htm

CI Host facing license lawsuit
By Andrea Ahles
Star-Telegram Staff Writer

FORT WORTH - Microsoft is suing CI Host, alledging that the Bedford-based company is not paying licensing fees for the use of Microsoft products.

This is the second lawsuit in less than four months that places CI Host in court against a technology giant. In August, CI Host sued the leading Internet service provider, America Online, for blocking CI Host clients from communicating with AOL subscribers.

In a suit filed last week in federal court in Fort Worth, Microsoft alleged that CI Host illegally used Microsoft's Windows Server software to provide services to CI Host customers. The suit says CI Host should have paid the Redmond, Wash., company a portion of its profits from those services.

As a Web-hosting company, CI Host provides hardware and software for customers who want to have Internet sites and e-mail service without owning or maintaining the necessary software and Internet servers.

CI Host Chief Executive Chris Faulkner said in a statement that he believes Microsoft wants to obtain information about the company's clients.

"It is our belief that Microsoft has recognized we are one of their top competitors in the hosting industry," Faulkner said. "We think information on our 200,000 clients would be information valuable to any such competitor."

Microsoft said it had alerted CI Host of the software misuse in September 2001 and begun negotiating with the company to create a licensing agreement.

"After a number of attempts at trying to get them to sign a licensing agreement, we felt we had no choice but to file suit," said Mary Jo Schrade, an attorney for Microsoft.

Microsoft has licensing agreements with other Web-hosting companies; those companies pay Microsoft a fee based on the number of clients using Microsoft's software.

Although Microsoft is seeking monetary damages from CI Host, the lawsuit does not specify a dollar amount.

On Monday, Microsoft filed motions with the federal court saying it was having difficulty delivering its lawsuit to CI Host. The company cited nine failed attempts to serve the court summons to CI Host's lawyer, Carole Faulkner.

The court ruled that Microsoft could give any employee of CI Host the notice of the lawsuit. Schrade said she believes that CI Host was served Wednesday and that the company now has 20 days to respond.

Faulkner said the company has not been served. CI Host's "registered agent ... has been out of the state since Nov. 6 and is not expected to return for another week," Faulkner said.

CI Host's legal battle with America Online was transferred to federal court in September, but most of the legal proceedings were put on hold when CI Host's attorney, James Hill, died that month. A new lawyer, Scott Robelen, was named to the case two weeks ago, according to court filings.

CI Host is seeking damages of at least $10 million from AOL, citing damage to the company's reputation.


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