Microsoft Corp. must face a lawsuit by the University of California accusing the world's biggest software maker of using patented technology without permission in the Internet Explorer Web browser, a U.S. court ruled. U.S. District Judge James B. Zagel rejected Microsoft's bid to dismiss the suit, ruling that too many issues are in dispute. "What the parties have provided me with are arguments that criticize each other's contentions and limited evidence with which to determine how the browser and operating system work together in identifying and locating an executable application," Zagel wrote.

The university and Eolas Technologies Inc., founded by former professor Michael Doyle, sued Microsoft in 1999, claiming infringement of a patented method that allows a Web browser to access an interactive application program. Microsoft sought dismissal of the case, arguing its Internet Explorer didn't work the way the patent described. "Microsoft is an intellectual property company and we respect intellectual property rights," Microsoft spokesman Jim Desler said. "While we're disappointed that this case was not dismissed, we do feel good about the facts in evidence as we move to the next phase of the process."