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Overture Files Suit Against Google

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From Bloomberg News

Overture Services Inc. sued Google Inc., claiming the rival Internet search engine stole its patented method for letting businesses pay to have their Web sites listed in the results of queries.

Pasadena-based Overture said Google was aware of its patent when it introduced a similar system this year.

The suit, filed in U.S. District Court in Los Angeles, is similar to a complaint Overture brought against another search engine, FindWhat.com, in January and asks the court to stop Google from using the technology. It seeks unspecified damages.

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“Google is directly infringing, inducing infringement by others and contributorily infringing one or more of the claims” of the patent, the three-page complaint says.

Overture lets businesses pay to have their Web sites prominently listed in the results of search queries. Google announced in February that it would offer a similar service, sending Overture’s shares down 9.6% on concern it would lose customers. Overtures shares fell 88 cents on Friday to $26.82.

Closely held Google was the sixth-most popular Web site in the U.S. in February, according to a report by Comscore Networks.

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Overture, previously called GoTo.com, ranked 43rd for the month. Overture has agreements to feature its search engine on AOL Time Warner Inc.’s America Online and Microsoft Corp.’s MSN Internet access services.

Overture’s shares fell 41% on Feb. 6 after EarthLink Inc. said it ended an agreement to use Overture’s search engine in favor of Google. Google’s investors include Kleiner Perkins Caufield & Byers and Sequoia Capital.

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