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MICROSOFT FEELS HEAT OVER AD

Microsoft Corp.'s Chinese subsidiary found itself in hot water recently after it ran an ad based on a design that it refused from an agency. The company has apologized to the ad agency, Sangxia Advertisement Co., and a court ordered Microsoft to pay the agency $24,096(US). According to the lawsuit, Microsoft asked Sangxia to design a newspaper ad. The agency gave Microsoft an estimated cost of the advertising and submitted a draft design three days later. Microsoft accepted the design, but wanted it revised. However, the two sides couldn't agree on the design's cost of $960 to $1,800. Microsoft soon ran an ad in newspapers in Beijing, Hangzhou and Xi'an that Sangxia claimed was based on its draft design without permission.

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