Microsoft has purchased a suite of US and international patents for digital rights management (DRM) technology from software provider Liquid Audio for $7 million. The patents apparently cover digital watermarking and software which enables internet users to download, listen and buy music on-line.

Under the terms of the deal, Liquid Audio will receive a royalty-free licence to continue using the patented technology in its digital distribution system, in addition to the cash consideration.

Gerry Kearby, president and CEO of Liquid Audio said that the deal was consistent with the company’s move from product development towards an “exclusive focus on the digital distribution of media to the retail community.”

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