Microsoft wins in digital media

C|Net | at | by Mike

AOL Time Warner's settlement with Microsoft on Thursday brings the software giant a powerful ally in extending its digital media technology--part of Microsoft's plan to keep Windows the world's dominant operating system and to expand onto new devices. The deal allows--but does not require--AOL Time Warner to use Microsoft's Windows Media 9 Series software and future versions of the multimedia technology, including its digital rights management (DRM) tool for securing music and video files from piracy.

Despite the open-endedness of the terms, the deal represents an important victory for Microsoft, which has tried for years to overcome reluctance from AOL Time Warner and other media companies to embrace its digital media technology over that of rivals, notably RealNetworks and Apple Computer.