What's New: Microsoft Settles with RealNetworks

Microsoft and RealNetworks have settled their antitrust lawsuit in a settlement worth $761 million. RealNetworks sued Microsoft in December 2003 for damages in excess of $1 billion. They alleged Microsoft used its Windows OS dominance to restrict RealNetworks' market share in digital media by forcing PC manufacturers to include Windows Media Player while restricting how competing players could be installed.

As part of the settlement, Microsoft will pay RealNetworks $460 million, and RealNetworks will receive long-term access to Windows Media technology. RealNetworks' music service Rhapsody will be promoted on Microsoft's MSN network, and Microsoft will offer RealNetworks' digital games through its MSN Games and XBox Live Arcade services. Also, Microsoft will pay an additional $301 million over 18 months to support RealNetworks' development and marketing. RealNetworks will promote MSN Search, and help promote Windows Media for use with Rhapsody.

Tuesday, Oct 11, 2005 02:35 pm CDT

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