October 12, 2005 – (HOSTSEARCH.COM) – Microsoft Corp. said Tuesday it will pay media software company RealNetworks Inc. $761 million to resolve a series of longstanding disputes including an outstanding lawsuit. The lawsuit issued by RealNetworks accused Microsoft of leveraging its market leadership of the operating system market to promote rival media software. Markets reacted favorably to the news with RealNetworks’ stock rising around 36 percent.
RealNetworks is recognized for its ‘Real Player’ software and the company claimed Microsoft's free inclusion of Windows Media Player as part of the Windows operating system had a negative impact on sales of RealNetworks' software. Microsoft will make an initial cash settlement of $460 million and RealNetworks will receive licenses and commitments giving the company long-term access to Windows Media technologies.
As part of the settlement Microsoft has agreed to promote RealNetworks' music and game subscription services through MSN while the two companies have committed to cooperation on future technology issues.
