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Microsoft settles streaming media patent claim


Microsoft and streaming media company Burst.com have agreed to settle a patent infringement suit, it was announced on Friday. Microsoft will pay $60 million to settle the action, and will receive a non-exclusive patent licence in return.

The agreement between the two companies will be finalised this week, according to reports.

The case dates back to 1999 when negotiations began between Burst and Microsoft over a possible licence for Burst's technology that would allow high quality video-on-demand over the internet. After two years, negotiations broke down.

Burst sued in June 2002, alleging that Microsoft's newly-announced 'Corona' product used technologies and trade secrets misappropriated from Burst following the unsuccessful negotiations. The suit alleged patent infringement, breach of the California Trade Secrets Act, and breach of contract.

The Santa Rosa, California-based company also alleged antitrust practices, arguing that Microsoft used its dominant market position to encourage companies not to use Burst's software.

The license agreed in the settlement deal is for use only by Microsoft in its own product and does not include sub-licensing rights.

Burst's CEO, Richard Lang, said: "We spent over a decade developing and patenting the technology in anticipation of the markets that are now emerging. Microsoft taking a licence validates the innovation of the Burst technology embodied in the underlying patent portfolio."

Tom Burt, deputy general counsel for Microsoft, said: "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."

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