Microsoft Makes Real Deal
RealNetworks Inc. announced Tuesday it had settled its antitrust lawsuit against its longtime adversary Microsoft Corp., marking the end of the last major antitrust case against the world's largest software maker.
The digital media services company said three deals valued at $761 million included the formation of a music and games partnership with Microsoft and resolution of all the companies' antitrust disputes worldwide.
"Today we're closing one chapter and opening a new one in our relationship with Microsoft," Rob Glaser, RealNetworks' founder and CEO, said in a statement released before a joint news conference the companies scheduled Tuesday morning.
Seattle-based RealNetworks sued Microsoft in December 2003, accusing the world's largest software maker of illegally forcing Windows users to accept Microsoft's digital media player. RealNetworks said its player suffered as a result.
RealNetworks, whose media players distribute audio and video to devices ranging from computers to smart phones, also has been one of the last big commercial opponents in a European Union antitrust case against Microsoft.
In that case, Microsoft was ordered to produce a version of its Windows operating system stripped of its own multimedia player to provide a more level playing field for competitors led by RealNetworks. Microsoft is complying with the ruling while appealing it.
The settlement is the latest in a series of peace accords that have cost Microsoft several billion dollars in recent years but have also served to put many of the cash-rich company's legal woes behind it.
In July, Microsoft reached an $850 million deal with International Business Machines Corp. That followed a $1.6 billion settlement with Sun Microsystems Inc. in 2004 and a $750 million truce with America Online, part of Time Warner Inc., in 2003.
RealNetworks has for years been one of Redmond-based Microsoft's direct competitors in the growing field of digital music and video. But the smaller company has struggled in the face of its massive rival.
Both companies also have recently been finding it tough to compete against iTunes and iPod maker Apple Computer Inc.