Salesforce.com shares slip after Microsoft files lawsuit over software patents
By APWednesday, May 19, 2010
Salesforce.com shares slip on Microsoft lawsuit
NEW YORK — Shares of Salesforce.com Inc. slipped nearly 5 percent Wednesday after Microsoft Corp. filed a lawsuit against the company alleging patent infringement.
The stock fell $2.37, or 2.8 percent, to $82.79 in afternoon trading. Earlier, the shares traded as low as $79.76.
Microsoft’s claims could signal it is taking a more aggressive stance in the market for software offered over the Web. Salesforce.com, based in San Francisco, has taken a lead role in so-called cloud computing, while Microsoft has focused mainly on its traditional business of selling software that runs on individual computers.
In its lawsuit, filed in the U.S. District Court for the Western District of Washington on Tuesday, Microsoft says Salesforce is violating nine of its patents. The Redmond, Wash.-based company is asking for unspecified damages.
At issue is a type of software used for customer relationship management. Salesforce’s software in this area competes with a product called Microsoft Dynamics.
Messages left with Salesforce on Wednesday seeking comment were not immediately returned.
Microsoft shares were down 26 cents to $28.34 as the broader markets also declined.
