July 30 (Bloomberg) -- Microsoft Corp., the world's biggest software maker, filed a patent-infringement complaint against Taiwan's Primax Electronics Ltd. after talks on a licensing agreement for computer-mouse technology broke down.

Microsoft filed the complaint because Primax has been ``unwilling to enter into good faith negotiations with us,'' said Horacio Gutierrez, Microsoft's general counsel for intellectual property licensing. ``Over two years of attempts by Microsoft to sit down to have a conversation, they haven't shown any willingness to reach reasonable licensing terms,'' Gutierrez said today in a phone interview.

The complaint was filed today with the U.S. International Trade Commission in Washington, according to a notice on the agency's Web site. The ITC, whose purpose is to protect U.S. markets from unfair trade practices, has the power to block imports of products found to infringe U.S. patents.

Microsoft rarely files lawsuits accusing companies of violating its patents. It more frequently defends itself against lawsuits by patent owners.

More than 20 companies have licensed Microsoft's mouse technology, which is part of a broader company program to license its hardware patents, Gutierrez said,. Primax's refusal to sign an agreement ``is unfair to the many companies that have already licensed our technology, so we are taking action to protect both our partners and our innovations,'' he said.

Seven Patents

The complaint accuses Primax of infringing seven patents related to Microsoft's U2 and Tilt Wheel technologies.

The U2 inventions allow a peripheral device, such as a mouse, to be used with both a USB and PS2 interface to connect to a computer. That allows device makers to make a single product that can be used in different types of computers. Tilt Wheels are a type of scroll wheel on top of a mouse that can move sideways or up and down for greater movement of a cursor.

Microsoft, based in Redmond, Washington, makes mice, keyboards and other hardware, and licenses many of its patents to more than 500 other companies in a program begun in 2003. Gutierrez said the company doesn't break out how much revenue is generated by the licensing program.

The complaint targets mice sold alone or with keyboards under the Dynex and Rocketfish names and available at electronics stores including those of Best Buy Co.

A woman who answered the phone at Polaris Electronics Inc., a U.S. affiliate of Primax, said she would send requests for comment to officials in Taiwan.

Microsoft filed a trade complaint in 2006 against Belkin International Inc. after it refused to license the same patents. That case settled ``within weeks or a few months,'' Gutierrez said.

`Same Conclusion'

``We're hoping to bring it to the same conclusion in this case,'' he said.

Gutierrez said Microsoft also would sue Primax in federal court in California, seeking cash compensation for the infringement. That case is likely to be put on hold until the ITC case is completed, he said.

In December, Primax reported on its Web site that it had sales of NT$16.06 billion ($520 million) from January to November of 2007.

The complaint is In the Matter of Peripheral Devices, 2625, U.S. International Trade Commission (Washington).

To contact the reporter on this story: Susan Decker in Washington at sdecker1@bloomberg.net.

Last Updated: July 30, 2008 21:36 EDT