The music-compression technology was developed in AT&T's Bell Labs, which later became part of Lucent. Microsoft used the technology in its Windows Media Player and the payment reflects the number of computers loaded with the software, according to
The decision, reached Thursday by a jury in U.S. District Court for the Southern District of California, may lead to more settlements with other technology companies, given the widespread use of MP3s on portable music players and computers.
An Alcatel Lucent representative did not immediately respond for comment. Microsoft, which had argued that it licensed the technology from Germany's Fraunhofer, said it would appeal.
Alcatel Lucent shares closed up 7 cents at $13.14. Microsoft shares were up 4 cents to $29.39 Thursday.