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Digital rights management (DRM) is an increasingly important issue for the electronic delivery of multimedia content, and the one-off payment means that Windows end-users will be able to use Microsoft technologies and services without requiring a separate licence from InterTrust.

'DRM solutions are essential to secure valuable personal, business and commercial content in a massively connected world,' said Will Poole, Senior VP of Microsoft's Windows Client Business. 'With our existing technology and IP portfolio combined with our new agreement with InterTrust, Microsoft is committed to working with the broader industry to accelerate the promotion of DRM standards and solutions.'

Microsoft has recently invested in ContentGuard, another

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DRM company. Poole has clarified why InterTrust technology was also licensed: 'There is no single patent that covers all intellectual property issues associated with DRM technology,' he said. 'Although ContentGuard owns critical IP related to DRM, other parties hold relevant IP as well. It's important for Microsoft to find a way for DRM systems to interoperate, and, as evidenced by these agreements, Microsoft is working with others in the industry to overcome barriers to establishing reasonable and flexible standards and then bring these solutions to market.'

The settlement is seen as part of an attempt by Microsoft to draw on its massive cash reserves to settle outstanding legal disputes. Last week, of course, it reached a surprise $2bn settlement with Sun.

But as one legal dispute ends it seems another always begins. The Associated Press has reported that a Korean Internet company is suing Microsoft for $8.7mn. Daum Communications is alleging - according to a lawsuit filed in Seoul - that Microsoft has broken trade regulations by tying instant messaging functionality into Windows. Daum's portal is reported to account for 10 per cent of Korea's instant messaging market.