July 25, 2005

Microsoft could face trademark challenge over 'Vista'

Custom application and services provider company named Vista is mulling legal action against Microsoft

The founder of a Redmond, Washington-based custom application and services provider is considering taking action to challenge Microsoft over the naming of the next version of the Windows operating system (OS).

John Wall, chief executive officer of Vista, said his company is "considering all of its options" for a potential case against Microsoft because of the company's choice of the name "Windows Vista" for the previously code-named Longhorn version of the OS.

Wall said the naming of Windows may violate a trademark his company has and potentially create confusion over the software and services Vista provides. Vista is headquartered just down the road from Microsoft and provides small businesses with online information systems, including custom applications, as well as with consulting services.

"If people call it Windows Vista, that’s not a problem," he said. "If people call it 'Vista,' that confuses it with our business and what we do."

Wall said Vista will be analyzing traffic to its Web site, http://www.vista.com, to see what effect the "Windows Vista" name may have on visitors to the site. If the effect is significant -- that is, if a surge of visitors come to Vista.com looking for information about Windows Vista -- the company may decide to take legal actions over the trademark.

One of the key tests for whether a new trademark can be challenged or not is if it creates confusion over another company's products and services, said Bill Lozito, president of Strategic Name Development, a brand naming consultancy in Minneapolis.

Vista potentially has a good case against Microsoft because its software and services are similar to what the software giant offers, he said. Because Microsoft is a larger, more recognizable company, the name confusion might drive some of Vista's potential customers to Microsoft.

"The ramifications are [customers] no longer associate you as this independent company and think you're a part of Microsoft," Lozito said. "If they need the service you’re providing, they’ll call Microsoft instead of you. You're going to get drowned out."

The issue for Vista is particularly prickly because the company deals mainly in the small business market, a segment where Microsoft also figures prominently, he added.

Wall's company is not the only one that might have a case against Microsoft in the naming of the next version of Windows. There are at least two other software companies, both named Vista Software, that might have a good argument against Microsoft's using the Vista moniker, Lozito said.

"Anyone using that name that’s doing business in this category runs the risk of being overshadowed by Microsoft Windows Vista," he said.

However, the presidents of the two companies called Vista Software, both of which provide add-on technology for Microsoft products, separately said their companies likely will benefit from Microsoft's choice of name for the next version of Windows because of their current affiliation with the Redmond, Washington-based company.

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