Microsoft And RealNetworks Settle Antitrust Lawsuit

by Glen Shapiro, LawAndTax-News.com, New York

13 October 2005

Microsoft and RealNetworks, Inc. on Tuesday revealed that they have agreed to settle a long-running antitrust dispute and create a new partnership to innovate and promote consumer choices in digital music and games.

The three agreements reached by the two companies included a pact to resolve all the companies’ antitrust disputes worldwide; an agreement for a wide-ranging digital music collaboration between the parties, including promotional and marketing support of Real’s digital music subscription service, Rhapsody, on MSN properties; and an agreement to offer RealNetworks’ digital games through MSN Games and Xbox Live Arcade for Xbox 360.

The antitrust and technology assurance agreement resolves all antitrust disputes worldwide, based on a $460 million up-front cash payment to resolve all damages claims and a series of technology licenses and commitments, under which Real will obtain long-term access to important Windows Media technologies that will enhance Real’s media software solutions.

"Today we’re closing one chapter and opening a new one in our relationship with Microsoft," announced Rob Glaser, Founder and CEO of RealNetworks.

"The legal chapter is being closed with an appropriate and fair outcome that sets the stage for a very productive and collaborative relationship between our companies. By integrating Real’s premier music and games services into Microsoft’s very popular MSN service, we will reach more consumers today and deliver even better products and services tomorrow," he added.

Recommended