Microsoft deal will ease web piracy worries

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Microsoft resolved another of its long-running legal disputes yesterday by paying $440m (£240m) to InterTrust Technologies and agreeing to license software from its Californian rival.

InterTrust has an extensive library of patents relating to digital rights management (DRM) technology, which is used to protect the distribution of music, films and other content on the internet. The company, part-owned by Sony, sued Microsoft for patent infringement in April 2001.

Microsoft hopes the deal reached over the weekend will pave the way for faster adoption of DRM technology, which plays a critical role in persuading content owners such as big movie studios to put their wares on the web.

The InterTrust suit raised the prospect that media companies using Microsoft's technology to make content available over the internet would also have to pay a licence fee to the Californian company.

But the settlement means customers can use Microsoft products and services without a licence from InterTrust. Software developers which use the Microsoft platform will also not need a separate licence.

"DRM solutions are essential to secure valuable personal, business and commercial content in a massively connected world," said Will Poole, senior vice-president of the Windows client business at Microsoft. "Microsoft is committed to working with the broader industry to accelerate the promotion of DRM standards and solutions."

Four years ago, Microsoft linked up with Xerox to create ContentGuard, a new internet company designed to deliver DRM software to protect books, documents, music and other valuable content distributed over the web. Mr Poole said that, while ContentGuard owns critical intellectual property related to DRM, "other parties hold relevant intellectual property as well".

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