Microsoft and Spyglass settled their browser royalty tiff today and agreed to expand their partnership in the Web device market. Microsoft has agreed to restructure the royalty agreement and will pay Spyglass $8 million, mostly in cash, to buy out future royalties through the end of 1998. The agreement mentions that Spyglass no longer plans to audit Microsoft's books. The original disagreement started when Spyglass revealed that Microsoft had only paid it the minimum required for each quarterly royalty.

Now that the dispute is over, the two companies plan to collaborate on open standards for Web devices such as WebTV and Windows CE-based products. Microsoft's popular Internet Explorer Web browser is based on Mosaic technology licensed from Spyglass in 1995.