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Copyright © 2003-2004 
InterTrust Technologies Corp. 
All rights reserved. 


Press Release 

Microsoft and InterTrust Settle Outstanding 
Litigation and License Intellectual Property 

Redmond, WA, and Santa Clara, CA, April 12, 2004 - Microsoft 
Corporation and InterTrust Technologies Corporation announced today 
that Microsoft has taken a comprehensive license to InterTrust's 
patent portfolio for a one-time payment of $440 million. 

The agreement resolves all outstanding litigation between the two 
companies. In addition, InterTrust receives rights under Microsoft 
patents to design and publish InterTrust reference technology 
specifications related to DRM (Digital Rights Management) and 
security. Microsoft and InterTrust believe this agreement will 
accelerate adoption and development of DRM technologies. 

"Licensing InterTrust's patent portfolio reaffirms Microsoft's 
commitment to the importance of intellectual property rights as well 
as our commitment to our end-user customers to stand behind our 
products in these emerging technology areas," said Marshall Phelps, 
deputy general counsel and corporate vice president of intellectual 
property at Microsoft. "One of our goals with this and our broader IP 
licensing program is to provide peace of mind for our customers and 
partners by letting them know that patent licensing Is our 
responsibility. Doing an effective job at managing the IP in our 
software differentiates our products and builds confidence that 
Microsoft has the rights necessary to build innovative solutions." 
"Today's announcement validates InterTrust's intellectual property 
portfolio as seminal to advancing DRM and trusted computing in the 
marketplace," said Talal Shamoon, chief executive officer of 
InterTrust. InterTrust will continue to help drive the adoption of 
these Important technologies through our inventions, licensing 
programs and reference technologies, and we expect to develop a 
thriving licensing business going forward." 
The settlement agreement ensures that Microsoft's end user 
customers can use Microsoft products and services as they are 
intended to be used without requiring a license from InterTrust. In 
addition, software developers who build products using Microsoft 
platform technology will not require an InterTrust license for normal 
and expected uses of the Microsoft technology. 
However, developers, including system integrators, may need a 
license from InterTrust for other uses of Microsoft technology, 
including cases in which Microsoft technology is combined with third 
party technology. Information about licensing terms, questions about 
whether a license is needed, and documents needed to license 
InterTrust technology can be found in licensing. Third-party software 
developers can also obtain information from Microsoft at 
www. microsoft.com/ presspass. 

"DRM solutions are essential to secure valuable personal, business, 
and commercial content in a massively connected world," said Will 
Poole, senior vice president of the Windows client business at 
Microsoft. "With our existing technology and IP portfolio combined 
with our new agreement with InterTrust, Microsoft Is committed to 
working with the broader industry to accelerate the promotion of DRM 
standards and solutions. Microsoft and our partners are delivering the 
most powerful and flexible rights management solutions in the 
industry, while assuring customers that we have the IP necessary to 
secure our nroriucts." 


secure our products." 

About InterTrust Technologies Corporation 

InterTrust Is an independent, privately held company located in Silicon 
Valley. The Company was founded In 1990 and was publicly traded 
from 1999 to early 2003 when It merged with a joint venture owned 
by Sony, Philips, and Stephens Bank. The Company holds 30 U.S. 
patents and has over 100 patent applications pending worldwide. 
InterTrusfs patent portfolio covers software and hardware techniques 
that can be implemented in a broad range of products that use DRM 
and trusted computing technologies, including computer operating 
systems, digital media platforms, web services, and enterprise 
Infrastructure. InterTrust has research, engineering, and IP groups 
focused on developing and monetizing next-generation technologies 
and Inventions. 

About Microsoft Inc. 

Founded In 1975, Microsoft (Nasdaq "MSFT) is the worldwide leader 
in software, services, and solutions that help people and businesses 
realize their full potential. 

# # # 

Media Contacts 

For more information, press only: 

Robin Buckley, Buckley Kaldenbach for InterTrust, (703) 533-9805, 
robln@buckleykaldenbach.com 

Isabel Kaldenbach, Buckley Kaldenbach for InterTrust, (703) 979- 
3076, isabel@buckleykaldenbach.com 

Leigh Anne Varney, Varney Business Communications for InterTrust, 
(415) 387-7250, la@varneybusiness.com 

Mark L Martin, Waggener Edstrom for Microsoft, (425) 638-7000, 
markm@wagged.com 

Microsoft Rapid Response Team, Waggener Edstrom, (503) 443-7070, 
rrt@wagged.com 

Note to editors: Additional information on InterTrust and Microsoft can 
be found at the following websites. For InterTrust, please visit other 
pages of this website. For Microsoft, please visit the Microsoft web 
page at http://www.microsoft.com/presspass/ on Microsoft's 
corporate information pages. Web links, telephone numbers, and titles 
were correct at time of publication, but may since have changed. For 
additional assistance, journalists and analysts may contact Microsoft's 
and/or InterTrust's Rapid Response Teams respectively or other 
appropriate contacts listed at 
http://www.mlcrosoft.com/presspass/contactpr.asp. 


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