Microsoft will pay InterTrust Technologies $440 million (€368 million) to settle a lawsuit over anti-piracy technology for digital files, music and movies.
The agreement is the latest move by the world's largest software maker to resolve its legal disputes, after it agreed earlier this month to pay longtime rival Sun Microsystems $2 billion to end an antitrust battle.
Microsoft, which was hit with a $600 million antitrust fine by the European Commission in March, faces tougher questions over its growing $53 billion cash pile, which the company has said it needs as a safeguard against numerous legal disputes.
By acquiring the right to use InterTrust's digital rights management technology and settle outstanding litigation, Microsoft said consumers and businesses would see more digital content being distributed over its Windows, Office, media player and other software products.
The settlement is a windfall for InterTrust, which is owned by an investment group led by Sony and Philips Electronics. It follows on the heels of an investment that Microsoft made in another digital rights technology provider, ContentGuard, last week.
Content providers, especially movie studios, have been reluctant to distribute their content in digital form after seeing how digital copying and distribution has led to weaker CD sales for music companies.
Under the terms of the deal, Microsoft will be able to use InterTrust's patented technology in its products and all outstanding legal action between the companies is resolved. - (Reuters)
