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(Continued)

Because Yahoo's Overture Services subsidiary runs one of the largest paid search businesses--and counts CNN and Microsoft's MSN as clients--its results are closely watched as a litmus test for the industry.

And to finish the week, a man arrested 6 days ago on allegations that he stole proprietary source code from the AltaVista search engine in 2002, is apparently a Microsoft employee working on MSN's Search initiative.

Federal authorities allege that Laurent Chavet, a former AltaVista employee, illegally accessed the California company's computer system in March 2002 and June 2002, after he left AltaVista and well before he went to work for Microsoft.

Chavet, then living in California, copied to his home computer source code that was used by AltaVista "to perform the function of scouring the World Wide Web," according to an FBI affidavit. Chavet's arrest was announced by the U.S. attorney in northern California last week, without reference to his current employment.

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