Microsoft Corp. on Mon. said it has entered a key distribution deal with HP Inc. to install a Live Search-enabled toolbar on all new HP consumer PCs in the U.S. and Canada.

The Live Search Bar will be included and be set as the default search engine browser in new HP PCs beginning in Jan. 2009.

Microsoft said it is building a custom Live Search toolbar for HP customers, including customization capabilities and online services and tools, including Snapfish and HP customer support.

In an effort to gain search market share, Microsoft in May began offering cash back rebates to customers who find and purchase products using the new Microsoft Live Search cashback search engine.

Key partners include Barnes & Noble.com, Circuit City, The Home Depot, eBay, HP, OfficeMax, Sears, and Vitamin Shoppe.

Microsoft yielded a search market share of 9.1 percent in U.S. Apr. figures according to research firm comScore.

By comparison, Google Inc. held a 61.6 percent share and Yahoo Inc. held a 20.4 percent share of all U.S. searches in the same period.

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