Microsoft and AOL Settle Browser Suit

[BigBlueBall News]

Jeff Hester

May 30, 2003

Microsoft settles browser suit with AOL, agreeing to pay AOL $750 million, and paving the way for the two companies to begin sharing technology. Could this mean the beginning of cooperation between the two instant messaging systems?

The lawsuit, originally filed by Netscape (now a subsidiary of AOL), alleged that Microsoft used their clout in the industry to muscle Netscape virtually out of the browser market. Apart from the financial award, the agreement includes provisions for the two companies to begin working together on common Internet technologies, including instant messaging, paving the way for interoperability between MSN Messenger and AOL Instant Messenger.

Highlights of the Agreement

• AOL gets nonexclusive license to use Microsoft’s digital media software, Windows Media 9.


• Companies will explore ways to increase adoption and distribution of digital media.


• AOL will receive a seven-year, royalty-free license to continue using Internet Explorer on its online service.


• Microsoft will provide beta tests of new Windows versions; AOL will participate in tests of its upcoming "Longhorn" operating system.


• The companies will explore ways for AOL and MSN Messenger to interoperate.


• Microsoft will expand its support contract with AOL and allow AOL engineers to work in its Redmond, Wash., campus.


• Microsoft will help distribute AOL CD-ROMs to PC builders around the world.

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• Microsoft settles browser suit with AOL - MSNBC, May 29, 2003