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Microsoft Reaches Deal With Nokia

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From Reuters

Nokia, the world’s largest mobile phone maker, and software giant Microsoft Corp. struck a deal Monday to make it easier for consumers to buy digital music online and play it on their handsets.

In a comprehensive agreement, which involves a separate deal with digital media company Loudeye Corp., Nokia agreed to put Microsoft’s music player software into its handsets.

In return, Microsoft will introduce open standards for digital music compression and piracy protection in its Media Players for personal computers.

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“This agreement makes it easier for consumers to download music they want to listen to, without having to worry about whether or not the file format is supported,” said Nokia Multimedia unit head Anssi Vanjoki in a statement Monday.

The deal brings together two longtime rivals. Nokia previously had used either in-house or RealNetworks Inc. music and video software.

The Finnish company sold 10 million phones in 2004 with an integrated music player, and a spokesman told Reuters that Nokia would launch a phone in 2005 that would support Windows Audio.

The deal is a boost to Microsoft, which has had little success penetrating the mobile handset market. Microsoft has tried to push a slimmed-down version of Windows for use in so-called smartphones, which offer limited PC-type functions such as e-mail, but its market share is less than 1%.

The software maker hopes it will encourage consumers to buy more songs from online Internet music stores that use its compression and anti-piracy software.

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