A $1.1 billion legal settlement sounds like a big hit. But Microsoft's settlement of consumer antitrust lawsuits in California could actually be a boon for the company. Under terms announced Friday, Microsoft agreed to pay $1.1 billion in vouchers to millions of California consumers to settle class-action lawsuits that alleged the software giant overcharged for its software. Microsoft said it would issue vouchers ranging from $5 to $29 per software license to consumers and businesses for future purchases of computer software and hardware.

The vouchers can be used to buy products from any maker, including Microsoft's rivals. But Microsoft holds more than 90 percent market share in desktop operating systems and office productivity software, so a large portion will likely go toward the purchase of more Microsoft products. Consequently, the-out-of-pocket cost to Microsoft would likely be far less than the settlement's $1.1 billion face value, analysts said. ``This seems like a meaningless settlement. $5 isn't going to make a bit of difference to anyone. It is certainly not a punishment to Microsoft,'' said John Perry Barlow, co-founder and vice chairman of the Electronic Frontier Foundation and a fellow at Harvard Law School's Berkman Center for Internet and Society. Microsoft should have been forced to give cash payments to consumers or grants to various organizations, he said.