Netscape, the onetime Internet star and the most visible victim of Microsoft in the "browser wars," filed suit in January 2002 claiming its woes were the result of "anti-competitive conduct."

Once the leading browser, Netscape has been reduced to a minor player in the market for browsers since Microsoft integrated its Internet Explorer into the Windows operating system.

Netscape was acquired in 1999 by American Online, and is now part of the AOL Time Warner group.

In a joint statement, the two companies also said they would "collaborate on long-term digital media initiatives that will accelerate the adoption of digital content," and to "a new royalty-free, seven-year license of Microsoft's browsing technology and a variety of steps designed to ensure that their products work better with each other."