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Microsoft settles Burst.com lawsuit

Patent infringement and 'technology misappropriation'

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Microsoft is paying streaming media company Burst.com $60m to settle an ongoing patent lawsuit.

The payment represents a one-off license fee for Microsoft to use the technology in its own products but "does not include sub-licensing".

Burst filed a suit against Microsoft in June 2002 claiming its "Corona" product: "Uses technologies and trade secrets misappropriated from Burst.com".

Burst.com's chief executive Richard Lang said the firm would use the cash to pay its lawyers' bills.

Once the attorneys are paid off the money will be spent in three ways. Firstly $2.8m will be set aside to cover current and long-term liabilities and outstanding debts. Secondly the firm will set up a fund for ongoing legal action against patent infringers and thirdly burst.com will pay out a cash dividend to shareholders.

The firm promised to publish final details of the settlement and Microsoft's patent license on its website when available.

More details on burst.com's website here.®

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