Microsoft has purchased a suite of US and international patents
for digital rights management (DRM) technology from software
provider Liquid Audio for $7 million. The patents apparently cover
digital watermarking and software which enables internet users to
download, listen and buy music on-line.
Under the terms of the deal, Liquid Audio will receive a
royalty-free licence to continue using the patented technology in
its digital distribution system, in addition to the cash
consideration.
Gerry Kearby, president and CEO of Liquid Audio said that the
deal was consistent with the company’s move from product
development towards an “exclusive focus on the digital distribution
of media to the retail community.”
