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Microsoft buys Liquid patents

Time: 11:42 EST/16:42 GMT | News Source: ZDNet | Posted By: Byron Hinson

Online music company Liquid Audio said Monday it agreed to sell its digital encoding patents to Microsoft for $7 million in cash, opening the door for its proposed merger with Alliance Entertainment. The agreement will allow Microsoft to own Liquid Audio's patented digital rights management and secure file-transferring technologies. Along with the $7 million in cash, Liquid Audio will receive a royalty-free license to continue using the patents.

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