"They found some of my developments," Sabelnikov said. "I used sabelnikov.net to debug some things, but sabelnikov.net had never been used to host any malware and had never been related to any kind of criminal activity."

For months, Microsoft attempted to negotiate with Sabelnikov, who ironically for around six years for two Russian companies, Agnitum and Returnil, that sell security software. By August, Microsoft was ready to throw in the towel and ask the federal court for entry of a default judgement.

"Microsoft has diligently attempted to negotiate a resolution with Mr. Sabelnikov in an attempt to efficiently resolve this matter without requiring further intervention by the court," according to an Aug. 8 court filing. "Mr. Sabelnikov has not yet answered."

The filing of lawsuits against people living outside the U.S., let alone Russia, can be fraught with difficulty. In July 2003, Russia suspended judicial cooperation with the U.S. in civil and commercial matters, to the U.S. State Department. Still, Microsoft served Sabelnikov with the lawsuit in person at his attorney's office in St. Petersburg on Feb. 21, which complied with Russian law.

Later in August, Sabelnikov apparently had a change of heart and entered into negotiations, according to a Microsoft filing on Aug. 23. "If there are any troubles, they have to be solved -- you should not hide from them," Sabelnikov said.