Barnesandnoble.com, Microsoft Open Online Digital Book Store

Microsoft Corp. and Barnesandnoble.com Inc. will open an e-commerce Web site selling digital books. Customers will be able to download the books to read on screen or in single hard copies, printed on demand.

Terms were not disclosed, but Microsoft is releasing the latest version of its free software for on-screen reading as part of the deal.

Advertising will support the joint venture. In addition the software giant would pay authors and publishers for the right to advertise their books with Microsoft products.