May 29 (Bloomberg) -- Microsoft Corp., the world's biggest software maker, will pay AOL Time Warner Inc. $750 million as part of a settlement of an antitrust lawsuit filed by Netscape Communications.

Microsoft also will give AOL Time Warner a long-term license to use its Internet browser and audio and video software, as well as distribute New York-based AOL Time Warner's Internet service to some personal computer users, Microsoft said in a statement distributed by PR Newswire.

AOL Time Warner, the world's largest Internet service provider, filed a lawsuit against Microsoft in 2002 seeking antitrust damages for crushing the rival Netscape Navigator Internet browser program. AOL Time Warner acquired Netscape after the U.S. government filed its antitrust suit against Microsoft. Microsoft develops Internet Explorer, now the most popular browser and runs the No. 2 U.S. Internet service.

Shares of Redmond, Washington-based Microsoft fell 1 cent to $24.40 at 4 p.m. New York time in Nasdaq Stock Market trading. New York-based AOL Time Warner declined 1 cent to $14.85 in New York Stock Exchange composite trading.

Last Updated: May 29, 2003 16:28 EDT