Microsoft settles RealNetworks disputes

[David Farber <dave () farber net>]

Begin forwarded message:

From: Michael Berman <michael.berman () artcenter edu>
Date: October 11, 2005 1:48:01 PM EDT
To: dave () farber net
Subject: Microsoft settles RealNetworks disputes


Microsoft Corp. (Nasdaq:MSFT - news) on Tuesday said it will pay
RealNetworks Inc. $761 million to resolve their disputes, including a
lawsuit that accused the world's largest software maker of using its
dominance in operating systems to promote its rival media software.

RealNetworks (Nasdaq:RNWK - news), the Internet media software  
company known
for its Real software has said Microsoft's decision to bundle Windows  
Media
Player for free within the Windows operating system was to blame for  
slower
sales at the RealNetworks' business division.

RealNetworks' suit is the last remaining major antitrust action  
against the
software giant, which has spent the last three years reaching agreements
with several U.S. states, the European Union and other companies,  
such as
International Business Machines Corp., Time Warner Inc. and Sun
Microsystems.

The cases came in the wake of the landmark 2002 antitrust settlement  
with
the U.S. government.

Microsoft will pay RealNetworks $460 million in cash up front to  
resolve all
damage claims. RealNetworks will also get licenses and commitments  
that give
it long-term access to Windows Media technologies that will enhance  
the Real
Player software.

Microsoft has also pledged to promote RealNetworks' music and game
subscription services through the MSN Internet network, specifically
RealNetworks Rhapsody subscription music service.

Microsoft said it will pay RealNetworks $301 million in cash and will
provide services over 18 months to support Real's product development,
distribution and promotions. Microsoft will earn credits against the  
$301
million for subscribers to Real delivered through MSN.

RealNetworks also said it will take steps to support MSN search. Both
RealNetworks and Microsoft will market the use of Windows Media  
technologies
with Rhapsody.

Rhapsody has won kudos from analysts and some fans, but its market  
share is
dwarfed by Apple Computer Inc.'s iTunes download service, which has a 70
percent market share.

The two companies also pledged to collaborate on technology issues in  
the
future.

The settlement caps years of backbiting between Microsoft and  
RealNetworks,
whose chief executive Rob Glaser is a former Microsoft executive.

Copyright © 2005 Reuters Limited. All rights reserved. Republication or
redistribution of Reuters content is expressly prohibited without the  
prior
written consent of Reuters. Reuters shall not be liable for any  
errors or
delays in the content, or for any actions taken in reliance thereon.
Copyright © 2005 Yahoo! Inc. All rights reserved.



-------------------------------------
You are subscribed as lists-ip () insecure org
To manage your subscription, go to
 http://v2.listbox.com/member/?listname=ip

Archives at: http://www.interesting-people.org/archives/interesting-people/