Reed Elsevier has filed suit against Microsoft Corp. and Expedia. The lawsuit was publicly disclosed by Expedia in filings with the U.S. Securities & Exchange Commission in connection with its recently completed initial public offering. Reed Elsevier claims Microsoft and Expedia breached a 1998 contract involving Reed Elsevier's Cahners Travel Group business unit. Under the contract, Cahners provided hotel-related information for the Expedia.com travel-oriented Web site. Cahners claims Microsoft and Expedia breached their obligations to Cahners, including by violating Cahners' exclusive rights with respect to providing hotel directory advertising sales support worldwide for Expedia.com. The suit also alleges conversion and misappropriation of Cahners' proprietary hotel database, unfair competition, breach of implied covenant of good faith and fair dealing, and interference with business relationships. The lawsuit, filed in U.S. District Court in Newark, New Jersey, seeks monetary and punitive damages as well as permanent injunctions.
Copyright November 1999, Crain Communications Inc.