UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): ~~December~~May 29, ~~2005~~2007

Timeline, Inc. __________________________________________ (Exact name of registrant as specified in its charter)


Washington	1-13524	31-1590734
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

1700 7th Avenue, Suite 2100, Seattle, Washington		98101
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


Registrant’s telephone number, including area code:		(206) 357-8422

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 8.01 Other Events.

On ~~December~~June 294, ~~2005~~2007, Timeline, Inc. ~~and~~issued ~~WorkWise Software Inc., its wholly-owned subsidiary, entered into~~ a ~~Patent~~press ~~License~~release ~~Agreement~~regarding ~~and Release with Sage Software, Inc. Under~~ the ~~Agreement, Sage paid to Timeline $800,000 in a one-time lump sum payment and received a world-wide nonexclusive license for Timeline's and WorkWise's portfolio of~~ U.S. ~~and~~Federal ~~international~~District ~~patents. Under~~Court ~~certain~~for ~~limited conditions, Sage also received~~ the ~~right~~Western toDistrict ~~sublicense the licensed patents and assign the license agreement.Under the terms~~ of ~~the~~Washington ~~agreement,~~granting ~~Sage and entities under its common control will be covered under the license on~~ a ~~worldwide~~partial ~~basis~~summary ~~for~~judgment ~~products~~in ~~they~~Timeline, ~~manufacture~~Inc. ~~or otherwise provide~~vs. ~~Additionally,~~ ~~Timeline~~ProClarity ~~agreed~~Corporation ~~not~~ to ~~enforce~~Microsoft injunctions it may obtain against customers and end users of third-party products that infringe Timeline's patents, if those products are sold by Sage for use in combination with Sage products that are covered by the patent licenseCorporation. ~~However,~~Attached ~~Timeline reserved the right~~ to ~~pursue~~this ~~damages~~Report ~~and~~as ~~injunctions~~Exhibit ~~against the manufacturers, resellers or other providers of any such infringing third-party products~~99. ~~Sage~~1 ~~will~~is ~~honor on~~ a ~~prospective~~copy ~~basis~~of ~~any~~the ~~injunctions~~press ~~Timeline may obtain against other parties with respect to third-party products that infringe Timeline's patents~~release.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.
99.1 Press Release, dated June 4, 2007, FEDERAL COURT GRANTS PARTIAL SUMMARY JUDGMENT IN FAVOR OF MICROSOFT IN TIMELINE SUIT.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Timeline Inc.
	Timeline, Inc.
January 5, 2006	By:	/s/ Charles R. Osenbaugh
June 4, 2007	By:	/s/ Charles R. Osenbaugh
		Name: Charles R. Osenbaugh
		Title: Chief Executive Officer
		Title: Chief Executive Officer and President

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Exhibit Index


Exhibit No.		Description

99.1		Press Release, dated June 4, 2007, FEDERAL COURT GRANTS PARTIAL SUMMARY JUDGMENT IN FAVOR OF MICROSOFT IN TIMELINE SUIT.

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