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Microsoft Settles With Burst

Staff Writer
Published: 2005-03-14

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Microsoft and Burst.com have reached an agreement in principle resolving all claims in Burst's lawsuit against Microsoft.

Microsoft will pay $60 million to Burst for the settlement of all claims and for a non-exclusive license (without sub-license rights) to Burst's patent portfolio. Burst's lawsuit, originally filed in June of 2002, asserted patent, trade secret and antitrust claims.

"While we were confident of prevailing in this lawsuit, we have been open from the beginning to finding a reasonable way to resolve this case," said Tom Burt, corporate vice president and deputy general counsel for Microsoft. "Securing a license to the Burst patent portfolio through this settlement allows us to focus on the continued development and deployment of Windows Media technologies to deliver the ultimate media experience to our partners and customers."

Burst stated that the patent license resolves the litigation with Microsoft and validates the Burst patents as pioneering intellectual property. Burst Co-Founder, Chairman and CEO, Richard Lang, explained that, "We spent over a decade developing and patenting the technology in anticipation of the markets that are now emerging. Microsoft taking a license validates the innovation of the burst technology embodied in the underlying patent portfolio. With this action behind us, the company can now focus on its other opportunities."

A vnunet.com article says, "Microsoft has been making a concerted effort to settle outstanding corporate litigation and clean up its image. In November it settled a long running dispute with Novell, and in April paid $1.6bn to Sun Microsystems. The company has also spent $200m settling class action suits from US states."

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