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announced Friday that it has reached an agreement, in principle, with client/server software provider


that resolves all claims in Burst's lawsuit against the Redmond, Wash., giant.

Microsoft will pay $60 million to Santa Rosa, Calif.-based Burst for the settlement of all claims and for a nonexclusive license to Burst's patent portfolio. Burst's lawsuit, filed in June 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, Microsoft's deputy general counsel.

Shares of Microsoft ended the regular session off 34 cents, or 1.3%, to $25.09.