Microsoft settles with AOL over Netscape

Microsoft is to pay $750m (€1bn) to settle a lawsuit brought by AOL Time Warner in relation to its Netscape unit.

AOL is also to get the right to use Microsoft Explorer free for the next seven years.

AOL will also have the right to use other Microsoft software, including its package to play back digital audio and video. It will also be able to use its digital rights management technology.

Up to now AOL has used software from RealNetworks and it may continue to do so, along with that of Microsoft.

The companies are to work together on online music services and may integrate their instant messaging services in the future.