Massachusetts, along with the District of Columbia, California, Connecticut, Florida, Iowa, Kansas, Minnesota, Utah and West Virginia, had refused to sign the November 2001 deal that ended a federal government investigation into Microsoft's alleged monopolistic practices in the market for computer operating systems. The states sought stricter penalties.
West Virginia said it was also considering an appeal. The deadline for filing appeal applications is today. The remaining seven states said they will not challenge the settlement further.
Under the terms of the settlement, which was approved by US District Judge Colleen Kollar-Kotelly last month, Microsoft is still allowed to tie its web browser, e-mail client and media player software with the Windows operating system.
However, it is not allowed to enter into exclusive agreements or retaliate against computer manufacturers using rival software products.
The company is obliged to license its software to manufacturers on uniform terms for five years, and to allow both manufacturers and consumers to remove icons for Windows features and to create programs utilising the integrated Windows functions.
Microsoft, which was found guilty of anti-competitive practices, has also agreed to pay the sum of $28.6 million to the states that signed the settlement.