Bill Gates Vs Martha Stewart whos more evil?

SEATTLE (Reuters) - Microsoft Corp. (Nasdaq:MSFT - news) said on Tuesday it would pay RealNetworks Inc. $761 million to settle an antitrust suit accusing the world's largest software maker of using its dominance to promote its own media software. RealNetworks (Nasdaq:RNWK - news), maker of Real Internet media software, has said Microsoft's decision to bundle Windows Media Player for free within the Windows operating system was to blame for slower sales at RealNetworks, shares of which rose as much as 48 percent in midday trading before slipping back a bit. RealNetworks' suit, filed nearly two years ago, was one of the last remaining major antitrust actions against Microsoft, which has spent the last three years reaching agreements with several U.S. states and other companies. In July, Microsoft agreed to pay $775 million to International Business Machines Corp. (NYSE:IBM - news) in a discriminatory pricing settlement. Last year, it agreed to pay Sun Microsystems Inc. (Nasdaq:SUNW - news) $2 billion. It reached a $750 million settlement with Time Warner Inc. (NYSE:TWX - news) in 2003. The cases followed Microsoft's landmark 2002 antitrust settlement with the U.S. government. Microsoft will pay RealNetworks $460 million in cash up front to resolve all damage claims. RealNetworks will also get licenses and commitments that give it long-term access to Windows Media technologies to enhance the Real Player software. Asked about the fate of the RealPlayer, which competed against Microsoft and became a key part of Microsoft's antitrust challenges in the U.S. and Europe, RealNetworks' chief executive Rob Glaser said: "RealPlayer continues to be a competing product." Microsoft has also pledged to promote RealNetworks' music and game subscription services through the MSN Internet network, specifically RealNetworks Rhapsody subscription music service. Microsoft said it will pay RealNetworks $301 million in cash and will provide services over 18 months to support Real's product development, distribution and promotions. Microsoft will earn credits against the $301 million for subscribers to Real delivered through MSN. RealNetworks also said it will take steps to support MSN search. Both RealNetworks and Microsoft will market the use of Windows Media technologies with Rhapsody. In this deal, Rhapsody effectively becomes MSN's music subscription service, complementing its own download service. Rhapsody has won kudos from analysts and some fans, but the dominant player in online music remains Apple Computer Inc.'s (Nasdaq:AAPL - news) iTunes. "Rhapsody is now an even stronger force to compete against Napster, AOL, Yahoo and MusicNet in the music field," said American Technology Research P.J. McNealy. "It's likely to be the No. 1 in subscription services in six months." In demonstrations at a press conference, Microsoft chairman Bill Gates and RealNetworks chief executive Rob Glaser showed how Rhapsody could be included in Microsoft services such as MSN Search and MSN Messenger, its instant messenger service. "I'm really pleased at how that's coming together," Gates said. The deal could have implications for Google Inc. (Nasdaq:GOOG - news), which bundles its search toolbar with the Real Player, American Technology Research's McNealy said. "If Real is now in bed with MSN for search, it can't make the folks at Google very happy," he said. The settlement caps years of backbiting between Microsoft and RealNetworks. Glaser is a former Microsoft executive. RealNetworks shares were up $1.96, or 34 percent to $7.70, after touching a 2-1/2-year high of $8.50 earlier in the session. Microsoft shares were off 7 cents to $24.38. RealNetworks is also withdrawing from pending antitrust cases against Microsoft in Europe and South Korea, but sources involved in those cases said the settlement is unlikely to affect their outcomes. Microsoft is challenging a 2004 decision by the European Commission which found that it violated the law by competing unfairly. "The Commission remains committed to ensuring full compliance with its March 2004 decision," said competition spokesman Jonathan Todd, adding that the case was about more than one company.