Microsoft clashes with Adobe over PDF support

Microsoft is bracing itself for a legal battle in Europe with Adobe Systems, following a breakdown in negotiations last week over the use of Adobe's PDF technology in Microsoft's Office applications suite.

Microsoft, which last October announced it would support Adobe's PDF format in its forthcoming Office upgrade, has reached an impasse after four months of talks, a Microsoft attorney said on Friday. Adobe wants the software giant to remove the PDF "save as" feature from its beta version of Office 2007 or to charge a fee for it, whereas Microsoft wants to offer that feature for free, said Dave Heiner, the deputy general counsel who oversees Microsoft's antitrust cases.

Heiner said: "The 'save as PDF' feature is the second most popular request we get from customers.

"Adobe has told the world that PDF is an open format... and [rival] products OpenOffice, WordPerfect Office and Apple['s applications] already support PDF and tout it as a selling feature. Microsoft should be able to support PDF as well."

Adobe has threatened to file an antitrust complaint against Microsoft with the European Commission if the software giant includes the PDF 'save as' feature in Office 2007, Heiner added.

Adobe, which acknowledges it has had discussions with regulatory agencies worldwide about Microsoft's use of its PDF format, contends it has not violated any antitrust or price-fixing regulations.

An Adobe spokeswoman said: "The regulators we talk to are the same regulators that cover antitrust and price regulatory issues. So we believe we are well within the bounds of the law."

Microsoft first learned of Adobe's concerns in a February letter from Adobe chief executive Bruce Chizen to Microsoft CEO Steve Ballmer, according to a source close to Microsoft.

In the past, Adobe has raised objections to Microsoft's plans to put its own XML Paper Specification (XPS) format, developed under the code name Metro, into the upcoming Windows Vista update.

As a result, Microsoft plans to remove from Office 2007 the ability to save documents as either PDF or XPS formats. Those capabilities can be added back in by customers via a free download from Microsoft's site.

Also, Microsoft said on Friday it will give computer makers the option to remove some of the XPS features from Windows Vista. Vista will still use XPS technology under the hood to handle printing duties but user options such as viewing and creating XPS documents will be omitted if PC makers choose that option.

Microsoft, which last week released a test version of its Office 2007 package, now plans to remove the PDF feature from that beta as soon as feasible. The company does not expect that effort to lead to a delay in the scheduled release of Office 2007, which has already been postponed.

CNET News.com's Ina Fried contributed to this story

Dawn Kawamoto writes for CNET News.com