Lindows.com, the software company in the midst of European and US trade mark battles with Microsoft, has withdrawn its products from sale in the Benelux countries, after a Dutch court was asked to fine the company for allowing Benelux citizens to view its web site.

The dispute dates back to December 2001 when Microsoft filed a trade mark suit in the US seeking to prevent Lindows.com from using the terms LindowsOS and Lindows.com, arguing that they infringe on its rights in Windows. The Lindows product is an operating system that promises the stability and cost savings of Linux with the usability of a Windows environment.

The case is due to come to trial in the US this month, but courts in Finland, Sweden and the Benelux countries – the Netherlands, Belgium and Luxembourg – granted temporary injunctions against the company in January, prohibiting it from distributing Lindows software.

Lindows.com's founder and CEO Michael Robertson responded by announcing that the company would re-launch its software programme in the Benelux under the name 'Lin---s', pronounced Lin-dash. Links were added to the main company web site so that Benelux customers who accessed it could go direct to the new Lin---s site.

Microsoft was not amused, and has since filed papers with a Dutch court, accusing the open source company of disregarding the original court order because it had not made the company web site inaccessible to persons from those countries. Microsoft asked the court to fine Lindows €100,000 per day.

On Friday, Robertson announced that Lindows products had now been withdrawn pending an appeal of the original order. He added:

"We have completely withdrawn our products from these markets and put notices on every page of our web site, yet Microsoft is still asking that the Judge fine us €100,000 per day because non-US visitors can view our US-based web site. Microsoft's actions demonstrate this has nothing to do with protecting their Dutch trademark or confusion in the marketplace, but is simply an attempt to put us out of business."

The case will be heard at the end of this month – after the hearing of the US dispute, which is due to go to trial in March.

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.