RealNetworks Settles, Eolas Patent Upheld

RealNetworks has dropped all legal claims against Microsoft, including its private antitrust lawsuit and participation in the European Union (EU) antitrust case, and the two companies will cooperate on marketing and technology in several key areas, including online music services, digital rights management (DRM), and gaming. The settlement will help both companies compete against Apple in the digital media space. Equally important, Microsoft removes its last nongovernmental antitrust opponent, while RealNetworks no longer faces the prospect of lengthy litigation against an opponent with virtually unlimited funds.

In other legal news, the United States Patent and Trademark Office (USPTO) has rejected efforts to invalidate a controversial patent on Web browsing technology held by Eolas and the University of California. This renews the threat that Microsoft will change Internet Explorer (IE), forcing Web developers to alter their Web pages or subject users to numerous prompts, and could open the creators of other Web browsers to similar lawsuits.