MozillaZine

Microsoft Pays Netscape $750 Million to Settle Antitrust Suit

Thursday May 29th, 2003

Several people wrote in to tell us that Microsoft has agreed to settle the private antitrust suit filed against it by Netscape Communications Corporation last year. Microsoft will pay AOL Time Warner, Netscape's parent company, $750 million to end the litigation. In a related agreement, Microsoft will give AOL a seven-year royalty-free license to use Internet Explorer and a long-term license to use its Windows Media 9 Series technology. The two giants have also agreed to work together on digital media initiatives and establish interoperability between the AOL Instant Messenger and MSN/Windows Messenger networks. In addition, Microsoft will give AOL more technical information about Windows and help AOL to distribute its software to some PC vendors.

CNN/Money, CNET News.com and Bloomberg.com all have articles about the settlement. More details are available in Microsoft and AOL Time Warner's joint press release.

Update! Further reports are available from Slashdot, MSNBC, PC Magazine, InfoWorld, InternetNews, ENT News, EE Times and the Associated Press (via InformationWeek). Meanwhile, CNET News.com asks if the IE licensing deal means the end of Netscape.

Another Update! CNET News.com now has an entire special coverage section on the deal, which includes a longer updated main article. The Bloomberg.com report has also been revised and other stories can be found at Wired News, BetaNews and Reuters.

Another Update! Microsoft's PressPass site has a transcript of a press conference call with Microsoft's Bill Gates and AOL Time Warner's Richard Parsons, which has been extensively referred to by many media reports. A collection of soundbites from Bill Gates is also available.

Another Update! Matt Kraai writes: "Salon is carrying an article on the Microsoft/AOL TW settlement and its effect on Mozilla. I found it via Boing Boing." To read the article, you'll either have to subscribe to Salon Premium or view a short ad, which will give you access to Salon for the day.


#62 This doesn't require MS proprietary formats

by pkb351 <pbergsagel@shaw.ca>

Friday May 30th, 2003 11:10 PM

You are replying to this message

"Time Warner probably wants pay per view internet video, paid for downloadable music and various other ways of making money on the internet."

AOL already has ties with Real. As far as I know AOL could just as easily set up pay for view using the Real formats. This is not reason to switch to MS proprietary formats. Even so the deal with MS is not exclusive so the content may be offered in more than one format. AOL may simply take the money and run. Nothing in the settlement, as far as I understand it, obligates AOL to use MS software or file formats.