Bill Gates offers to make peace with DoJ

Microsoft has offered the US Department of Justice (DoJ) an out-of-court settlement in its ongoing anti-trust court case, according to US reports.

The software giant is believed to have sent a four page letter to the DoJ earlier this week, which offers compromise on Microsoft's licensing agreements with OEMs (original equipment manufacturers) and ISPs (Internet service providers).

Sources at Microsoft suggest this is the area the company is most likely to cede to the government.

A spokesman for Microsoft UK refused to either confirm or deny the existence of the letter, but said: "We have wanted to settle this case from the beginning, but we cannot agree to anything which stops us from innovating."

Reaction in the US was less enthusiastic. Attorney general Bill Lockyer representing California - one of the 18 states taking action against Microsoft - described the offer as: "A minimalist opening offer... and far from what anyone in our group would expect to be adequate."

The case starts again on 12 April.