Nobody’s laughing and least of all smiling at Microsoft today over an alleged trademark infringement by two California companies who market those digital smiley faces.In a federal court lawsuit in Seattle, sourpuss MS CEO Steve Ballmer et al claim that Digispace Solutions and yMultimedia have violated trademark law by “registering one or more Internet domain names that are identical or confusingly similar to Microsoft’s trademarks and service marks.” The companies sell digital smiley faces and other animated figures known as emoticons. In their advertising sales, they’ve used Microsoft’s msnmessenger.com and other MS domain names for downloading purposes, says the suit, which is “likely to lead consumers to mistakenly believe that the websites reached through those domain names are affiliated with or sponsored or approved by Microsoft. Defendants’ websites have exploited this confusion by conspicuously displaying Microsoft’s MSN trademark.” Microsoft attorneys say some of the companies’ websites “brazenly claim that these products are a ‘bonus feature’ of Microsoft’s messenger products,” and offer visitors a link to “download” MSN – the links actually redirect visitors to “one or more other websites controlled by Defendants and/or Smiley Central.”Neither of the companies have yet responded to the suit. Microsoft is seeking an injunction and unspecified damages to stop the alleged infringement.