Adobe Systems is expected to file an anti-trust lawsuit against Microsoft in Europe after talks between the two failed to resolve a dispute over Microsoft's use of Adobe's PDF (Portable Document Format) software, according to the Wall Street Journal.

Microsoft's Office suite includes PDF and Adobe wants its software to be removed and offered for a fee, according to the report, which quotes Brad Smith, Microsoft's general counsel. Microsoft is willing to take PDF out of Office, but does not want to charge for it, said Smith.

Representatives of Microsoft and Adobe in Europe could not be reached for comment about the WSJ story.

The matter was raised by Adobe four months ago and "previously undisclosed talks" then ensued in an effort to avoid litigation, according to the article. The widely used PDF software allows users to create electronic documents. Microsoft had included PDF in test versions of Office 2007, expected out next year, but will remove PDF from the suite, WSJ quotes Microsoft officials as saying.