A CASE STARTED in a Texas district court against Microsoft and Google, alleging their products incorporate a patent illegally.
Paid Search Engine Tools (PSET) alleges that both infringe a patent it owns called “Paid Search Engine Bid Management”, and numbered 7,043,450.
This tech, alleges PSET, is used in Google’s Adwords scheme and Microsoft’s Adcenter scheme.
PSET wants damages from Microsoft and Google. µ
Are you sure that they aren't "Paid Engine Search Tools" ? or PEST for short...
Are software patents really needed? Why can't USA abolish software patents the same way as they can not be applied in Europe? It would get a lot easier playground for everyone.
Patent law already dictates that if you independently develop code that matches a patented code there is no infringement. There are only so many ways to write a search engine code, so some lines are going to be duplicated no matter what. They'd need to be able to prove that Google and Microsoft took their code and used it without their permission, and without a previous business agreement that does not include their current uses they are up the creek without a paddle.
Mike, I believe you are confusing copyright with patent. With copyright, if you don't literally copy the other's implementation, but develop it independently, you are clear. With patents, the independent development is not a defense -- the patent holder has a monopoly on the IDEA, not just the implementation. 

Yes, it is crazy, but that's the way it is. For many years, software couldn't be patented, but some crazy judge back in the late 80's decided a case in a way that opened the door to allowing patents on software, resulting in the mess we have now.
The system in a lot of places is messed up! It allows people to patent almost anything! The easiest type of patent to get is one on Intellectual Property (IP)! They need to makes laws governing IP patents and software patents which some are based on IP and some are just plain bogus!

There are firms that come up with IP patents and then charge major corporations for using there practices which some firm decided to patent as IP and makes money off of nothing! One that's really getting sticky is Cellular technology, some small firm recently passed a patent on IP of just the simple functionality of a Cellular Phone, a patent that (don't quote me on this part) said something along the lines of "a device that uses microwave radiation to transmit encoded signals of voice data for the use of telecommunications"! That's not what it said but it was very similar and stupid!

It's like I could go out and get a patent for "a device that is used for in in conjunction with refilling and/or refueling a motor vehicle, transport device, and/or object that uses an engine that burns, consumes, and/or depends on a fuel." I could make it more technical than that but basically I can get an IP patent on a fuel hose/pump here in the USA and charge gas stations a penny per every gallon and make a ton of money off of something I didn't invent but hold the patent to!

It's so stupid that something like than can be done and there's no laws governing these actions!
So, let me get this right. PSET have their own search engine, and their business is loosing money because the two biggest (and wealthiest) search engine owners [Google and Microsoft] scoured the internet so that the could plagiarize someones else's code because they could not afford to pay someone to write the code from scratch.

Mankind is doomed if everyone were to patent every idea they have!
If they turn that idea into a working product, then we have hope.
If they abandon that product, then the patent drops and the idea becomes public again and can never be patented, [in that form]