Microsoft and Burst.com Settle Outstanding Litigation and Enter Into Licensing Agreement
March 11, 2005
Microsoft will pay $60 million to Burst for the settlement of all claims and for a non-exclusive license (without sub-license rights) to Burst’s patent portfolio.

REDMOND, Wash., and SANTA ROSA, Calif., March 11, 2005 — Microsoft Corporation (NASDAQ: MSFT) and Burst.com, Inc. (OTC: BRST) today announced that the two companies have reached an agreement in principle resolving all claims in Bursts lawsuit against Microsoft. Microsoft will pay $60 million to Burst for the settlement of all claims and for a non-exclusive license (without sub-license rights) to Bursts patent portfolio. Bursts lawsuit, originally filed in June of 2002, asserted patent, trade secret and antitrust claims.

"While we were confident of prevailing in this lawsuit, we have been open from the beginning to finding a reasonable way to resolve this case," said Tom Burt, corporate vice president and deputy general counsel for Microsoft. "Securing a license to the Burst patent portfolio through this settlement allows us to focus on the continued development and deployment of Windows Media technologies to deliver the ultimate media experience to our partners and customers."

Burst stated that the patent license resolves the litigation with Microsoft and validates the Burst patents as pioneering intellectual property. Burst Co-Founder, Chairman and CEO, Richard Lang, explained that, "We spent over a decade developing and patenting the technology in anticipation of the markets that are now emerging. Microsoft taking a license validates the innovation of the burst technology embodied in the underlying patent portfolio. With this action behind us, the company can now focus on its other opportunities."

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

About Burst

Founded in 1988, burst.com has pioneered the development of Faster-Than-Real-Time™ video and audio delivery. burst.com has built an international patent portfolio covering bursting, video delivery scheduling and rapid casting.

Microsoft is a registered trademark of Microsoft Corp. in the United States and/or other countries.
Burst.com is a registered trademark of Burst.com Inc. in the United States and/or other countries.
The names of actual companies, products and technologies mentioned herein may be the trademarks of their respective owners.

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