claiming to own a patent on paid search methods, reports Media Post.

Paid Search Engine Tools of Liberty stated in its lawsuit that Google's AdWords and Microsoft's adCenter, violate the terms of patent no. 7,043,450. There 2006 patent Paid Search Engine Bid Management was for a method of optimizing keyword bids, said J. Robert Chambers of Cincinnati, the attorney for Paid Search Engine Tools.

Further, Chambers stated that Paid Search Engine Tools previously provided this type of service to marketers, but that Google, Microsoft and Yahoo cut into the company's business when they began to offer the service directly. Chambers said the company is seeking damages and an injunction against Google and Microsoft.

The litigation was filed in the Eastern District of Texas, Marshall Division, which is thought of as among the most plaintiff-friendly court in the country for patent lawsuits. Google even has other patent infringement suits against it in this division. However, it would be also be interesting to note that on last September 2007, the Paid Search Engine Tools had filed a similar lawsuit against Yahoo. But Yahoo instead asked the court to dismiss the lawsuit and declare Paid Search Engine Tools' patent invalid.

Last year, 13 patent-infringement claims were filed against Google, of which, eight of them where in the Eastern District of Texas. While 17 patent suits were brought against Microsoft in the Eastern District of Texas in 2007, and there are even many cases elsewhere. Certainly, it is no wonder then that Google and Microsoft are among the 150 corporate signatories of a letter sent to congressional leaders in January by the Coalition for Patent Fairness in support of S.1145, the Patent Reform Act of 2007. Bitter or better, you tell me?

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